Small business owners starting out in Plano have many options. While some small business owners want to strike out on their own, others do not want to go through the process of starting their own enterprise from the ground up. These small business owners may want to either buy an existing business or buy a franchise.
Buying an existing business
If you purchase an existing business, you have more control over business operations but less outside guidance. You have the advantages of an established customer base, known operating expenses and trained staff. However, you may struggle to establish operations in the beginning as you will have no set infrastructure or external guidance.
Buying a franchise
The franchising process begins when you, as the franchisee, purchase the rights to use another business’s (the franchisor) logo, name and business model. Many restaurants and hotels are franchises, as are many other service-oriented businesses. Franchising has the benefit of brand recognition, promotions and marketing. However, franchisees are restricted in the sense that they must follow the franchisor’s rules on business operations and daily business activities.
Considerations in buying an existing business or franchise
Becoming a business owner is exciting, whether you start your own small business, buy an existing business or franchise. There are benefits to all three choices. Three considerations you will want to keep in mind when deciding whether to buy an existing business or franchise include how much you want to spend on the purchase of the business, your job skills and the existing businesses and infrastructure in the area you want to build your own business in. Ultimately, you will want to consider all your business formation options so you can make decisions that are in your best interests.