The manner by which you choose to enter a business will depend on your needs and your financial resources.
Here are the four ways to enter a business:
Starting your Own Business: Starting your own business allows you to start the business of your choice. Whether you want a digital printing shop, or a postcard printing company, or a shoe factory or even a fashion boutique, all is possible.
You can decide where to locate your business and how you will set it up. You do not have to take on old bad debts, a bad reputation, or a poor location that you may inherit when you buy an existing business.
However, you must establish every aspect of your business from the ground up. In addition, you must create and build a reputation with your customers.
Purchasing a Franchise Business: A franchise is a legal agreement to operate a business in the name of a recognized company. The franchisee (the person purchasing the franchise) buys an existing business operation. All business planning is done by the franchisor, the owner of the recognized company.
Planning generally includes management training and assistance with advertising, merchandising, and day-to-day operations. The biggest disadvantages of franchising are the large amount of capital needed to purchase most franchises and the high initial fees charged to begin operations.
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Also, the franchisor may limit the franchisee’s choices as to how the business is run.
Purchasing an Existing Business: When you buy an existing business non-franchise business, you usually receive little or no help from the previous owner. Therefore, you must investigate why the business is being sold. You must carefully examine the business records and the condition of the property and inventory. You must also determine the reputation of the business in the community.
Taking Over the Family Business: Some of the same considerations for purchasing an existing business also apply for a family business. You must review business records and the overall condition of the property and inventory.
You must determine the reputation of the business in the community. In addition, you need to explore potential conflicts and concerns with family members.
Knowing these ways on how to enter a business, what will you choose?
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