You want to run your own business, but you can not decide whether you should buy a franchise or start a business from scratch. Creating an overview of the pros and cons of each option can help you decide which one is right for your situation and personality.

Franchise.

Advantages: At the highest level, the franchise offers an opportunity to buy in an existing and successful business model that has proven track record, a successful training program, a solid supply chain and expert technical support. Some of the best-known franchises have impressive success rates, with chances of failure, which are in low figures. By purchasing a franchise, you get a turn-key business that's ready and waiting for you to ride your horsemen. If you are focused on detail, good in the next direction and comfortable with the set systems, the franchise offers a quick and easy way to become a business owner.

Disadvantages: Franchising also poses challenges. Buying a franchise can be a costly proposition, costing between $ 500,000 and $ 1 million. (For a look at the potential costs, read the franchise fees: They can be expensive.) Franchises also come with ongoing expenses.

Start-up

Advantages: If you have an idea, you could turn it into business. Sam Walton did it with WalMart; Bill Gates did it with Microsoft, John Schnatter did it with Pope John. And countless other entrepreneurs did the same thing. Startup costs not exceeding than 10 000 dollars, having your own business - either full-time or part-time in the basement, garage or the trunk of your car - is significantly less expensive than the costs associated with many franchises. And if everything goes well, your unique idea can become a franchise one day!

Disadvantages: When you start your own business, you are on your own. Many things are not known (Will sell the product? Will these customers be? You will earn enough money to survive?) And the failure rate is high. Statistics show that 25% of enterprises in the initial phase do not survive in the first year.