Business Options

Before you decide if business ownership is right for you, consider the following:

What are you expecting from self employment?

• How much control do you want?
• How much money do you want to invest?
• How much experience are you bringing to your business?

Which business option best matches your personal and business needs?

• It is important for you to take the time to assess your personal and business goals and objectives. These should be considerations when you decide which method of becoming an entrepreneur is right for you.

Outlined below are three business options available to you. A list of advantages and disadvantages is included for your consideration.


Consider the advantages and disadvantages listed below:
Advantages
  • You are your own boss
  • Unlimited potential for wealth
  • Challenge of bringing your product to market
  • Personal satisfaction of accomplishment
  • Opportunity to develop your own business policies and practices
Disadvantages
  • Cash flow fluctuation
  • Lack of support
  • Sole responsibility
  • Limited resources and possible gaps between business and technical skills
  • Longer time to market
  • Difficulty financing

Consider the advantages and disadvantages listed below:
Advantages
  • Already up and running
  • Potential for immediate salary
  • Established company reputation and customer base
  • Established track record on which to base projections
  • Existing facility, equipment and trained employees
Disadvantages
  • Significant research required to identify and assess viability of business
  • Business value may be difficult to determine
  • Assets may be overvalued
  • Possibility of having to pay for “goodwill”
  • Difficult to begin slowly or try business out
  • Reduced feeling of personal satisfaction from creating and building a business
  • Possibility of inheriting employees who do not share your vision
  • Changing previous business practices may create customer resistance
  • Difficulty financing

Consider the advantages and disadvantages listed below:
Advantages
  • Possibly easier to access financing
  • Access to quality training and ongoing support
  • Established concept with reduced risk of failure
  • Access to extensive advertising
  • Access to lower cost and possible centralized buying
  • Fewer start-up problems
  • Use of well-known trademark or trade name
Disadvantages
  • Onerous reporting requirements
  • Costs of supplies and materials may be more expensive
  • Possible exaggeration of franchisor advantages
  • Franchisor may saturate your territory
  • Cost of franchise and other fees may reduce your profit margins
  • Inflexibility due to restrictions imposed by franchisor
  • Termination policies of franchisors may allow little security

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