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Should I Start a Business or Buy a Franchise?

Posted on in Business Law

Metro NYC business law attorneyThere 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 into 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 typically 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 large percentage 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 Westchester County Business Lawyer

Becoming a business owner is likely to be 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 the offices of Ivey, Barnum & O'Mara, LLC today. Call 203-661-6000 to schedule to schedule a free confidential consultation with an experienced White Plains business law attorney. We will work hard to ensure that your best interests are properly protected.

 

Sources:

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

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

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