Should I Buy a Franchise or Start My Own Business?

franchise, DuPage County business lawyersThere are numerous advantages to being a business owner. For example, it can be disheartening to work for another person or company. You may feel unappreciated by your superiors or frustrated at the inefficient way you are expected to do your job. When you own a business, you get to be your own boss. You control how your business is operated and managed.

However, owning a business also comes with a great deal of responsibility and liability. You may need to spend a tremendous amount of time and resources for only marginal growth—especially at first. If you are thinking about becoming a business owner, two options you may be considering are buying a franchise or starting your own business. There are benefits and drawbacks to both of these choices, all of which should be fully researched before you make a commitment to either path.

Do You Want Input and Guidance from a Franchisor?

The most significant difference between buying a franchise location of an existing business and starting your own business is the amount of control you have over the business. While you may still have power over some day-to-day aspects of a franchise, the major decisions about business practices, operations, marketing, and accounting will be made by the franchisor. Only you can know if this type of business relationship is right for you. Do you feel capable of developing your own business model from scratch or do you want guidance and oversight from a business organization that is already successfully established?

How Much Time and Money Are You Willing to Invest in Your Business?

Starting your own business gives you much more freedom than buying a franchise. However, this freedom comes with a remarkable about of accountability, both personally and financially. Take time to determine how much money you are realistically willing and able to invest in your business. Also consider the level of risk you are comfortable accepting. A great number of new businesses fail within the first five years of operation. Whether you are considering buying an existing business, a franchise location, or starting your own business, never jump into a new business venture without exhaustive investigation into what will be expected of you.

Contact a DuPage County Business Lawyer

Becoming a business owner is probably one of the biggest decisions you will ever make. To get the legal support you need to make your business ownership dreams a reality, contact Stock, Carlson & Duff LLC today. Call our office at 630-665-2500 to schedule a confidential consultation with and experienced Wheaton business law attorney.

 

Sources:

https://www.entrepreneur.com/article/286212

https://www.score.org/resource/should-you-buy-business-or-start-one-scratch