Ways To Own A Business Without Building It From Scratch
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Owning a business can be a great way to live. You can take in good amounts of profit, run something you’re passionate about and be your own boss. You can make something you’re proud of and watch it grow with more customers and a better reputation.
When thinking of owning a business, many people’s minds will pan to startups. Creating a startup can be rewarding, but it does involve a lot of work. You will have to find a gap in the market where you can make profit. You will also need to create a business plan, get funding and pour a lot of money into it to even see it begin operating.
It can also be risky. If you find out your company isn’t as successful as you thought it would be, you may find yourself in debt. This might put you off owning a business altogether.
Fortunately, there are other options. You can own a business without building it from scratch. This can help you start a business that is proven to make profits. It also removes all the difficult planning, funding and legal work involved in starting a business. Here are some of the ways you can own a business without starting it from scratch.
Become A Franchisee
Want to own a business with a proven track record and a good reputation? Well, just franchise it! Many businesses offer franchise opportunities for people who want to run their own branch. This means you can run a business that already has a customer base. This means less hassle and more profits from the get go.
You can create a new branch of an existing retail store. Or even franchise a weight loss program. There are all kinds of franchise opportunities out there. If you want to see what’s available to you, FranNet can help you find franchises for all industries in your area.
Even well-known brands offer franchise opportunities. A 62-year-old ex-farmer from Wales now turns over £36 million a year from his 15 McDonald’s restaurants in the South Wales area. Ex NBA-player Junior Bridgeman has owned over a hundred restaurants from franchises such as Wendy’s and Chilis. He now has an estimated net worth of $400 million.
Starting your own branch of a franchise can still be costly. You will still need to pay certain business costs. They will need to rent a suitable building and pay for the resources. Certain franchises may help them with some resources, but it will still cost them some money. A business loan might be a good idea.
Buy-Out A Business
Maybe you want to start a business but can’t find a profitable idea that hasn’t been done already. In that case, why not consider buying-out an existing business in the field you’re interested in?
This has many of the same advantages as a franchise. You will be able to see how the business has been performing so far, so you will know what you’re getting into. They will most likely already have an established brand and customer base. They may also have assets such as a running website and social media channels for marketing.
This can also beat out franchises, as you will already have employees. You will essentially be taking over from the old business owner, taking over everything that has already been set up.
So why isn’t everyone doing this? There are disadvantages and risks involved.
It can be very costly. You might need a business advisor, accountant and lawyer to make sure the whole process goes smoothly. Negotiations might involve the previous owner retaining a percentage of the business, or some of its stocks.
You also may have to improve the business yourself. Already profitable businesses will not come cheap. Be prepared to invest in one you believe you can bring to its full potential and generate more profit in the long-run.
If you want to own a business and you see one you think you can take further, then this might be the best option. Many startup owners will be happy to be bought out for the right price. This will let them focus on other projects while you take their business to the next level. They will provide you with whatever they have already built up to help you keep their business running.
Work Your Way Up
If your ambition is to own a business but you aren’t in a big hurry, then you can simply work your way up to the top of your industry.
When previous business owners retire, they will look for someone else to take their position. This can take the form of finding a new owner outside of the business, or someone to buy them out. However, it can also mean a trusted and respected employee within the business takes over the reins.
This is particularly common in family businesses, where the next generation will work their way up to inheriting the business from their parents. But it can also happen in any business where the owner wants someone they can rely on to uphold their company ethics.
This can also involve becoming a partner in a business. A partner will receive interest or equity in the company, giving them a share of the profits and part-ownership. A business owner may choose to make an employee into a partner if they prove themselves worthy.
Going from employee to owner can involve a lot of complications, both personal and legal, for the previous owner. Therefore, this is usually only bestowed upon golden candidates. If you want to work your way up to the top of a business, you will have to grind hard and prove you are capable of running it yourself. Make sure to maintain strong business relationships and learn the ins and outs of how the company operates.
If you do make it, you will be the owner of a business that you already know how to run. This can be the least complicated way to own a business, but the hardest to actually achieve.
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