When it comes to buying your own business there are a lot of things to take into consideration. First and foremost, you need to have the funds and the drive to keep a company alive and profitable. If you have little or no business experience, this can be really intimidating and oftentimes it will scare people away from the idea of running their own business.
However, another thing you need to be aware of is that not every business requires the same leadership qualities to run. Some businesses may need little direct involvement from you while with others, you will be spending a lot of time, hands-on, with everything the company does. Another thing you’ll want to think about is whether you want to own a franchise or run an independent company. In this blog, we’re going to talk about some of the advantages and disadvantages of franchises and independent companies.
The great thing about a franchise is that it’s already a proven business model. You don’t have to worry about how to organize the business, how to hire people, or how you will control assets because that has already been determined for you by corporate. Below are several of the main advantages to buying a franchise:
When you buy a franchise you have the benefit of national marketing projects that are already in place by your company. Most corporations market themselves heavily on a national level, so all you will need to do is worry about local advertising. Even this process is made easier because you will be provided with templates, graphics, and guidelines for your advertisements. Additionally, you won’t have to work on brand image because it’s usually already set in place by the corporation.
Another benefit of owning a franchise is that you will be sent through an extensive training program that will prepare you to run the business. If you ever run into a problem running your franchise, you will have assistance from corporate. You’ll also have a set protocol for training your employees.
Owning a franchise will give you access to exclusive territory. In other words, your franchisor will allow you a certain geographical area that they won’t build other stores in. This means that you’ll have less competition and more opportunity to grow your business in that designated area. This does not, however, mean that you won’t have competition from other businesses outside of yours. It just means that your own franchise won’t be losing customers to other franchisees within the same company.
Purchasing an independent business
Like with buying a franchise, there are a lot of benefits to buying or starting an independent company. Owning an independent company will allow you to run a company your own way and be in a better position to make crucial decisions for its future.
The main benefit of buying an independent company is that you will have the freedom to run it how you choose. There are no rules set in place as to what direction you take the business in and you won’t have a franchise taking a portion of the profits. If you’re ambitious and willing to take chances, this is a great opportunity to do something you’re passionate about.
If you’re buying an independent company rather than making your own start-up, you’ll have the best of both worlds. When you purchase a company through a business broker, you’ll have assurance that a product or service is profitable while still having the freedom to rebrand, grow, or change your business. There’s no need to deal with the pitfalls of starting a company from scratch.
Before you buy a company through a business broker, you will be provided with information on the costs and responsibilities required to keep it running. Although you will have this benefit with a franchise, you won’t have it with a start-up. When you hear about most startups failing it’s for this reason. When you buy a business, you’re purchasing a profitable idea that’s already made it through its most difficult stages: the startup process.
Supporting small businesses
The process of business buying naturally entails supporting small businesses. Although buying a franchise comes with its own benefits to the community, owning a small business means having a more personal relationship with the community and the opportunity to provide them with a product or service that is custom fit for their needs and wants. This flexibility isn’t typically available to you with a franchise.
If you’re looking to buy a business in Colorado Springs, don’t hesitate to contact ENLIGN business brokers today! We don’t accept businesses that can’t substantiate financials, are not cash flow positive, start-ups, or sellers with unrealistic ideas about their business. What this means for you, the buyer is that you’re getting a business that will succeed in a competitive marketplace!