Starting a business can be overwhelming for first time entrepreneurs. If you have a great idea and are ready to work hard, then you may wish to start your own business. But if you want to avoid some of the common challenges of starting a business, buying an existing business or a successful franchise may be a better option.
Starting your own business
Benefits
- Complete freedom to design and manage the business according to your vision.
- Not bound by anyone else's rules, history or assets.
- Opportunity to bring something new to the market.
- Can be less expensive than buying a successful business.
Challenges
- Can take a while until you are profitable.
- There is no guarantee of business success and there is a high rate of failure for new businesses.
- More difficult to get financing because lenders or investors are taking a risk with your idea.
Buying an existing business or franchise
Benefits
- Benefit from the work that has already been done on establishing a brand, developing customer relationships, developing business processes and acquiring assets.
- Can start making profits more quickly.
- Easier to get financing because the business model is proven.
Challenges
- The up-front investment is often higher than if you were starting your own business.
- The previous owner and/or franchisor's business model and way of doing business may not be a perfect match with what you envision.
Switch Language