Buying a Business vs Starting It Up

There are different routes to run a business. Starting up one may sound as hugely exciting, or it may sound uncertain the either way. It’s well worth to find out about how it compares to purchasing & starting from scratch to ensure you are choosing the best path. In this blog, we will discuss-

• Advantages of buying franchise business over starting up

• Disadvantages of buying franchise business over starting up

• Which one is best for you?

Advantages: FRANCHISE BUSINESS VS START- UP

While buying a business, it’s often easier to secure finance from banks than in case of starting up as buying a business lowers down the risk. Buying an established business already have proven market, existing customer base, well-established network of suppliers and employees and a brand and business model, saving you the hassle of building these up. All in all, the advantages you, being a franchisee will be getting are -

• Easier to secure finance while buying.

• Buying a biz provides an established network of contacts.

• Leverage brand value and successful business model to get more customer base in short span of time.

• Buying gives you returns from day one, unlike starting up.

• Support from business owner for marketing, training and business handling; thus a non-experience person can also start this.

Disadvantages: FRANCHISE BUSINESS VS START- UP

Opening a franchise of an existing business is easy yet expensive offering less control over business. You may find it restrictive to work on someone else’s plans and business model, and also you would have existing staff and customers may resent a new boss and any change you want to bring in the process. In short:

• Buying may be expensive in most of the cases

• Buying can be more restrictive than starting up

• Existing staff and customers may be resentful of change

• Buying can be a long process and the business may carry problems

• Run and promote business in restricted territory

• Regular payment to franchisor till the validity of franchise business

Which is best for you?

If you are passionate about any particular product or type of business and you have that confidence to start from zero, then starting up may be for you. But, on the other hand, if you are one of those who prefer to run an already established business without the drama of building up everything, then buying a franchising chain is your cup of tea.

Yes, the choice also depends on your affordability of buying and on what kind of business you want to run. Buying is simple, easy and gives you returns on day 1 but still you are working for some brand which you don’t own so those who want to see their brand growing-up, starting-up is the only option for them.

• Confidence and passion in a new idea better suits to start- up

• If you don’t want the work of starting up a business, taking franchise opportunities may be better

• Decide your budget and think what you want to do before making a decision

• Owning a franchise store gives return of investment on day 1

To help you, we’ve created an online portal, the place where you can find all the businesses you want to put your feet in. Start finding topmost franchise opportunities.