Owner finance business opportunities pros and cons

Going into business on your own can be a scary yet exciting thing. As an owner financer, there are many business opportunities for you to look at. It's important to weigh all of the pros and cons as you are making this important decision.

Buying a Business
If you want to be self employed, but feel like you're lacking creative idea, and don't want to take a big risk consider buying a franchise or an already existing business. It is often easier to find the money to back you up if you decide to go with an already existing business or franchise.

Franchising is relatively new in terms of business. The success rate is equal to if not higher than that of independent business, especially if you are a first time business owner.

Some bonuses that come along with buying a franchise are:


• Instant credibility


•  Quick return on investment


•  Training


•  Technical support


•  Other franchisees willing to offer support

If it's looking like this may be an option for you then keep reading. To make your decision easier, here is a list of pros and cons to buying a franchise.

PROS

1. Success Rate- Franchisees are extremely successful. In fact their failure rate is less than 5%, making their success rate, you guess it 95%.


2. Brand Recognition- people are familiar with franchise brands and become accustomed to using them. This will increase your business no matter where you are.


3. Support- As stated before, franchises offer a number of training programs, and support through meetings, research, etc.


4. Low cost- This is by far one of the best ways to keep your costs down and learn how to run business at the same time. There is minimal risk among buyers because the franchisor is helping them learn how to avoid common errors, and providing them with information to become successful. This could be helpful if you ever plan to start your own business.

CONS

1. Agreements- Although there is much freedom and flexibility in owning a franchise, you must be the franchise fees, or a percentage of your gross earning.


2. Risk- The risk is considerably less with buying a franchise, but let's face it, there is risk in everything you do. There is no guarantee in anything you do.


3. Franchise comparison- Just as there are consumers that become familiar with brands and learn to trust them, there are also consumers that have negative experiences which can turn them away from your franchise.

Starting your own business

PROS

1. It's all your own! The best thing about starting your business is the fact that you get to create something from scratch. That is why starting a new business is appealing. The major idea is to come up with something new; and that's why people do it.

CONS

1. Customers- If you don't come up with a product that will sell, your business will fail.


2. High Failure rate- Most small businesses fail within the first few years


3. Long work days- In most cases a new business owner will work more than the 40 hour work week. The hype to owning your own business is working less hour's right? But that doesn't usually happen until you are a well established business. Plan on spending at least 20-40 hours more than you're usually work day. This can be stressful for you and for your family.


4. Self motivation is a key- because there is no conventional structure, you will have to adjust to getting things done on your own and keeping your business active. You can't just "be sick" one day.

When it comes to business opportunity, this is just the tip of the ice-berg. You can finance your own business, finance a franchise, or seek something else. Find what fits best in your lifestyle and take a chance.

When considering your business options, be sure to get feedback from a team of advisors including an accountant, a lawyer, and a financial advisor.

The pros and cons of starting a New Business are listed here:

Pros:

• For true entrepreneurs, the real goal and major appeal is in the creation of something new, not necessarily in the management aspect, so starting a new business is appealing.

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