Buying a small business is a major career step. One of the first decisions you’ll need to make relates to the type of business you hope to acquire. Specifically, you will need to decide whether to buy an independent business or buy a franchise. If you’re looking for a great business opportunity, owning a franchise through Payroll Vault will allow you to get in on the ground floor of a very fast growing industry. However, owning a franchise isn’t for everyone and we’ll be the first ones to admit that! Should you buy an independent small business or a franchise? We can help with that decision.
- Consider the ownership model. From an ownership perspective, a franchise is very different than a typical small business. Unlike independent business owners, franchise owners don’t have the freedom to change their products or services based on their personal desires or changing market conditions. On the other hand, independent business owners don’t have the security of knowing that product lines, service offerings and other ownership decisions have already been tested and optimized for the marketplace.
- Look at cost. Independent business owners are likely to have higher investment costs to buy and operate their business, but they also have more control over the investment decisions and timing thereof. Franchise business buyers typically have lower total investment costs (especially upfront), but need to fulfill the obligations set by franchisors.
- Think about brand recognition. In most cases, franchise buyers have an advantage over independent business owners when it comes to brand recognition. Unless the independent business seller has proactively cultivated the brand, it’s unlikely that the business will enjoy the brand recognition that comes with standard franchise business opportunities.