Starting a Small Business - Will You Buy or Start from Scratch?
A Home Business Article Contributed by M. Larose
Starting a Small Business - Will You Buy or Start from Scratch?
Will you buy your small business or will you begin one from scratch? The decision to begin your own small business is an exciting one. Working for your self and running the show is a dream for many people. Working nine to five for someone else in an environment that you may not feel good about can wear on a person. The idea of escaping a creating your own small business or working for your self may be at the top of your list.
Starting a small business does not mean you have to begin from the beginning. Some small business owners purchase franchises and pay franchise fees to own a business that already has a reputation.
The Small Business Reputation
In order to have revenue you must have customers. N order to have customers you must advertise. When you advertise you are beginning the process of building a reputation. You are building a visual image, an image that the public will recognize and tie to a particular service or product. The idea is that customers will begin associating you with that product or service and when they want to purchase they will come to you.
Of course there is a second part to this equation you have to give them a great product for a decent price and you have to have good customer service. This a lot to accomplish right out of the shoot, you have just begun your small business and you need to already have a reputation in order for the business to build revenue quickly.
Small Business Franchise Advantages
There are advantages to a franchise that a small business startup usually does not have. The idea when purchasing a franchise is that you have a ready-made business with product, materials, equipment, and process ready for yo to step into. You are making revenue based on their business name and you pay for that every month with any franchise fees you pay.
The same may be said of purchasing a local business. Usually after paying for equipment and possibly the location, a local business adds on what is called a good will fee to their price. You are paying them for the reputation, the name and the customers that will be knocking at your door from day one. You are paying them for their hard work and in return you get an instant revenue stream. You will of course have to work to continue that revenue stream but you have jump-start on the business that others just starting out never have.
Disadvantage of Buying an Established Small Business
Purchasing an established business may bring you more headaches than you might expect. You really do not always know what you are getting yourself into. There may be strings attached that you were never aware of and you may find out that the business actually was struggling to make ends meet from the day they opened their doors, doing your homework on the business prior to purchasing can pay off in these kinds of situations.
