Start-Up, Buyout or Franchising

ENTREPRENUERAL OPTIONS : START-UP, BUYOUT OR FRANCHISING

For a new entrepreneur, the decision to own and operate a business is the result of his serious exploration of ideas and sensible evaluation of opportunities. A sensible entrepreneur would always consider serious issues before going into business. Very often, the decision to engage is a particular business would minimize the possible waste of time, energy and resources if it is made after carefully addressing these issues.

A. Starting a New Business

This is a business from scratch as start up. The reasons for the popularity of a start up among entrepreneurs are varied. They find it exciting and satisfying to be able to put to use the latest ideas, process and facilities in running a business. The challenge that goes with doing something new puts the entrepreneur passionately at work. Also, some entrepreneurs get a feeling of fulfilment in their autonomy and freedom to run a business.

These are the other reasons that move an entrepreneur to pursue a business:

1. If the entrepreneur has a newly invented or newly developed products or service.

2. When the entrepreneur wants to take advantage of an ideal location, product or service, equipment, employees, suppliers and financial backers.

3. If the entrepreneur wants to avoid problems and undesirable commitments in policies, contracts, and procedures involving other firms.

Advantages:

1. Lower start-up costs - Depending on the type of business you start, costs may be lower than a franchise where there is no up-front purchasing fee or supply costs

2. Independence - You make all decisions and create all business systems

3. Site selection - You choose where to locate your business and what marketing procedures to follow

4. No baggage - There is no history to overcome when you start a new venture

5. You’ll have the opportunity to orient the business toward your own personal goals.

6. You’ll...