What Type Of Business Ownership Is Right For You?Posted: March 6, 2013
As a follow up to last week’s blog where I outlined key questions to consider before starting a business, I’d like to go a step further into business ownership starting with the question what type of ownership is right for you? Most people think that starting a business from scratch is the only way to go, but other options like purchasing a franchise or an existing business are important to consider too.
With over 30 years of business experience and as the owner of my own franchise, The Alternative Board, York Region, I have seen business ownership from all angles. Business ownership is not for everyone, but if you have determined it is right for you, you should explore all your options.
The most important considerations are the level of risk, and the learning curve associated with each ownership option. I have outlined below 3 key points you that will help you decide what the right type of business is for you.
1. Starting Your Own Business
Starting your own business comes with the highest level of risk and the steepest learning curve. Most new business owners are excited and passionate about their venture, but often become overwhelmed with the amount of capital, stress, and the level of work required to get and maintain clients, as well as the continuous planning that is needed to grow the business.
2. Purchasing an Existing Company
Purchasing an existing business comes with varying degrees of risk and learning curve depending on the quality of the business you choose. With purchasing a business you really need to spend a lot of time on research and also be prepared to spend up to a year before you find a business you would like to buy. You will benefit from all the positive assets and processes of the business, but will inherit all the challenges the previous owners had.
3. Purchasing a Franchise
Owning a franchise comes with one of the lowest risk options and the shortest learning curve. You’ll need to do your homework to ensure you purchase a good franchise; one that provides all the upfront financial investment details, required training and necessary processes to successfully start and operate the franchise.
There is MUCH more to it than the few points I’ve touched upon, so stay tuned to my blog in the coming weeks for more on business ownership and the advantages and disadvantages associated with each option.