how to start sole proprietorship, existing business, franchise?
Answers
Answer:
4 Ways to Start a Business
Independently Sell for a Brand. One of the easiest ways to be your own boss is to sell for an established brand. ...
Independently Sell for a Brand. One of the easiest ways to be your own boss is to sell for an established brand. ... Freelance or Consult. One of the easiest ways to start a business is to freelance or consult. ...
Independently Sell for a Brand. One of the easiest ways to be your own boss is to sell for an established brand. ... Freelance or Consult. One of the easiest ways to start a business is to freelance or consult. ... Franchise. ...
Independently Sell for a Brand. One of the easiest ways to be your own boss is to sell for an established brand. ... Freelance or Consult. One of the easiest ways to start a business is to freelance or consult. ... Franchise. ... Start a Service Business in Your Community.
Franchise Vs. Sole Proprietorship
Some franchisors include annual advertising fees as part of your costs.
When you're thinking about starting a new business, you might be considering whether to operate as a sole proprietorship or to affiliate with a national brand by opening a franchise. With a sole proprietorship, you can operate your business using your own name or by registering a fictitious trade name. With a franchise, you normally adopt the name of the franchise as the name recognition is part of what you buy.
Explanation:
Franchise Benefits
Buying into a franchise normally gives you a better opportunity to generate customers and grow your business right away. When you stick the name McDonald's, Ace Hardware or Jiffy Lube on your front door, you have immediate recognition in the marketplace. You benefit from the brand recognition the franchisor has earned. Some franchisors offer initial support in selecting a business location, training your employees and getting your business going. When the company invests in marketing, you get the benefits from that as well. You may also save money buying from franchise suppliers.
Franchise Drawbacks
Less freedom is a primary franchise drawback. Franchisors want to protect the value of their brand and usually require franchisees to adhere to certain standards in operations, cleanliness, promotions and overall management. Franchisors may also dictate where you can put your business to avoid encroaching on another franchisee's territory. The costs of getting into a franchise are typically much steeper than starting your own business from scratch. You usually pay an upfront franchise fee, ongoing royalties or a combination of the two.
Sole Proprietorship Benefits
A sole proprietorship gives you much more freedom and flexibility. Since you are starting the business on your own, you get to decide where to put it, how to market it, how to maintain it and what products and services to sell. Sole proprietorships are also easier to set up and run. You don't have to sign a contract with a franchisor, and there are typically no formal filing requirements other than local business licenses in some cases. You also don't have to pay the upfront fees and royalties to a franchisor.
Sole Proprietorship Drawbacks
Trying to get someone to Joe's fast food shop is not as simple as getting them to a McDonald's. You have to find an ideal location, develop a solid business plan, market your business to attract customers and deliver a quality product and service. This takes time and money. As a sole proprietor, your personal finances and reputation are closely aligned with your business. In essence, if your business is sued, your individual assets and earnings are at risk.