Starting a business can be daunting even to the most seasoned of veterans.
The primary focus of any good business owner is to make good decisions.
When it comes to opening a business, there are countless decisions to make even months before opening day:
– What kind of business should you open?
– When should you open?
– How much should you spend?
– Should you open one with a partner, multiple, or just go it alone?
All of these are excellent questions to answer yourself, and should be carefully considered before you decide to “pull the trigger” so-to-speak.
We at BuySellBusinessHelp.com believe that anyone has the potential be an amazing business owner, they just need to know where to find the right one.
After doing some research we’ve collected data for four main types.
Each one of these have their own unique advantages and disadvantages, and none of them are a one size fits all solution.
1. SOLE PROPRIETORSHIP
Sole Proprietorships are owned by an single person or family, and can be fairly risky to start.
These businesses are usually smaller in scale, are unique to each area, and sometimes are refered to as “Mom & Pop stores”.
SPs rarely have more than one physical location, and typically start with low or even no brand recognition.
A franchise is a business that is looking to expand their influence by bringing on other business owners with the same business model.
Franchises prove a safer option for business owners to make money by providing them with a proven business model, training, support, and more in exchange for a franchise fee and/or royalty.
Franchises are great for investors of every experience level, especially for those that are a bit more cautious in nature.
Much like an Sole Proprietorship, Partnerships are typically smaller-scale businesses that are typically location-specific.
The main difference between a partnership and a SP is the fact that there are multiple owners of the business.
Partnerships are usually formed to combine resources such as time, money, or experience in order to increase their success rate.
A corporation is a larger-scale business that can be open for investors, called shareholders, to buy into.
The business can then use these investments to increase the scale of their business much faster than a typical business.
When the corporation profits, a portion of the money made then goes back to the shareholders, (plus interest) in a mutually-beneficial relationship.
As far as which type of business is the best… that’s a tough question to answer.
Each of these businesses have their owns pros and cons, and are best suited for different types of people with varying levels of experience.
Just like how some people avoid taking risks, others prefer to risk more in order to potentially make a lot more money.
The best kind of business is always the one that’s best for you and your personality.
WANT TO KNOW MORE?
While not all franchise consultants offer additional resources, our team at BuySellBusinessHelp.com does.
We believe in more than just trying to make the sale happen, we believe in helping you make the decision that’s best for you.
At the end of the day, everyone is different, and while some are suited to being a business owner, others simply aren’t for one reason or another.
Here at BuySellBusinessHelp.com we offer tons of information about on buying and owning a business, a diagnostic personality quiz, webinars, countless visual aids, and more.
If our article caught your interest, or the idea of opening a franchise excites you, please reach out to us via the form below so we can talk.
We’d love to hear from you!