Small Business Ownership Options

This chapter discusses the different ownership options available to small business owners. The three options are starting from scratch, buying an existing business, and obtaining a franchise.

Questions

• What are the three ownership options available to small business owners?
• What are the advantages and disadvantages of starting from scratch?
• What are the advantages and disadvantages of buying an existing business?
• What are the advantages and disadvantages of obtaining a franchise?

Answers

The three ownership options available to small business owners are starting from scratch, buying an existing business, and obtaining a franchise.

The advantages of starting from scratch include the ability to build the business the way you want and the potential for high rewards. The disadvantages include the high risk and the long time it takes to build a successful business.

The advantages of buying an existing business include the fact that you already have a proven product, current customers, and a known location. The disadvantages include the high cost of buying a business and the potential for hidden problems.

The advantages of obtaining a franchise include the use of a proven business model and the support of a franchisor. The disadvantages include the high cost of franchising and the lack of control over the business.