A Business can either start from a simple project that involves the individual application of small capital to a business this is the business from scratch. Another ownership is from buying an already existing business from a willing buyer. Another still can be owned from the franchise which includes a method which a company uses to help distribute its trademark products through engaging small retail outlets owned by independent individuals (Finell, 2007).
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The pros of a business from scratch are that the business is entirely owned by the person and he has full control of his business decision-making and selling products of choice this gives a maximum effort in the relationships with customers. The cons are that the owner handles all the loss of the business alone and this creates a risk of maintaining this business since severe loss can lead to failure. The pros of buying an existing business are that one will have an already stocked business and will not struggle to get documents of acquiring a business and they will still have total control of these businesses. The con is that one cannot know the processes and plan of running such business in that particular area or they will not know the issues that made the owner sell such business (Fred, 2008).
For the pros of a franchise, the new management will bring in new development to the various sub-businesses thus creating an improvement in marketing strategy and in selling the company’s products. Its cons are that the ideas by the new management might not be appealing to the sub-run businesses under that umbrella thus creating a misunderstanding between employers and thus low sales. These businessmen do not have the same approach since they handle customers at different levels and will do it again because of one on one contact with customers. For the existing business one, they would not because of the reasons under which the business was sold and lastly for franchise one it is difficult to have a hands-on activity. The surprise is everybody will want to start over again to improve the business further.
Finell Dorothy.The area of expertise Shop: How to Create Your Own exclusive and Profitable Retail commerce, AMACOM American Mgmt Assn. 2007.
Steingold Fred. Legal Guide for opening & Running a Small company, Nolo Publishers. 2008.