Matrix

What are the pro and cons of starting a business from scratch; buying an existing business; and buying a franchise?

There are certain elements for each that could be considered a pro or a con – depending on how you want to look at it. However, I will list them as I see them.
Franchise Pro:
- The business structure is thought out and setup for you. This allows you to concentrate on the running of the business, rather than figuring out all the policies and procedures. This includes store policies, procedures, products to sell, merchandising, marketing, uniforms, store layout, staff training tools and wage agreements.
- Regardless of whether you start a new one or buy an existing one you will receive support and assistance rom the franchise head office.
- Franchises are easier to resell later down the track if you decide to because they are well known and potential buyers are more trusting of them.
- Whether you start a new one or buy one a loyal customer base should already be established due to recognition and previous experiences from other locations of your chosen franchise.
- Raw materials/products are often available at better prices because your head office will have already done the organising and bargaining with suppliers/wholesalers. Also, there is more likely a chance to have items offered exclusively to you so other businesses in your area will not necessarily be able to compete with price and/or product.
- If you hire staff who have worked in other stores of your franchise they could bring added experience and will lower time-out for training purposes because they already know the routine and what is expected.
Franchise Cons:
- The business structure and procedures are thought out for you. This will allow little room for your own input into how your business runs. This can be great if you want an easier business option and want to run your business as if you are more the manager than the owner, however if you want to really run a business as your own you may find this hinders you quite a bit.
- Franchise Fees. These will vary in amount depending on the franchise you choose and will include a joining fee as well as monthly fees. You will have to make sure your business can sustain this additional cost as well as all the other overheads.
- If you hire staff who have worked in other stores of your franchise they could bring over bad work practices and have a lower work ethic because to them "it is all the same", not something that they feel inspired to make work for you.
- You will have multiple competitors, that is other stores of your franchise if they are not too far away.
- If starting a new franchise a huge starting up expense will be involved, more so than opening your own business as everything has to be "just so" from the day you open.In your own business you might find that small things might do for the time being – such as uniforms could be simple until you start making some money. This can also be a good thing as you won’t have to change anything or remember to keep money aside for upgrading anything specific at a later date.

Buying an existing business will leave you susceptible to many things both good and bad – eg. existing location and reputation. Also, you may have to continue to honour deals made by the previous owners to certain customers that you may not agree with, and not necessarily know whether they are correct or if the customer is trying it on. However, if you refuse to continue with these deals you may lose a lot of regular business. These deals can be good because the customer may spend a substantial amount at your business and continue to do so once you take over.

Well, this is the longest answer I have ever given. I think I will leave it at that for now and I am sure you will be able to figure out the pros and cons of starting up your own business by considering some of the things I have mentioned here.

I am going to start a business in my area for mowing lawns, weed and trash removal, and even putting in drip systems. I Would like to know what I should call this business and how I should pull in Customers. I’m 16.

use something with your name in it or you will have to deal with all kinds of stupid legal paperwork

John’s Landscaping Services or something simple like that

I have spent several thousands of dollars on a new business (Recording studio), and I’ve made those purchases in my personal checking account. Now, I am starting a new business account to keep things separate, but is there some way to "move" those identified business transactions to the new account?

Get your business accounts opened. Then transfer money into the business checking account.

Pick your start date (date you "opened" for business). Your previous expenses are "startup" costs and are mostly deductible over several years, not in your first year of business. So keep track of them, but they don’t really feed into your new business accounts.

Info from the IRS on startup costs:

http://www.smallbusinessnotes.com/fedgovernment/irs/583/startup.html

What are the main tax things to consider when starting a business?

For a sole trader, partnership and proprietary company?

The principal differences between these entities are:

Sole trader: you claim all the profits, and you are responsible for any losses or things that might go wrong. If the business fails it will be up to you to bail it out or go bankrupt. Details of the business are reported via the supplementary section on your own tax return.

Partnership: A business or trading entity run between two or more parties. The profits or losses are shared. Each partner is liable for the failure or wrongdoing of other partners (unless proven otherwise). Reports tax on a partnership tax return with the distribution to each director to be claimed on individual tax returns.

Proprietary company: A legal entity in its own right, failure fo the company does not necessarily become failure of the director(s) although Director’s Penalties can be imposed and you can still be pursued in court if things go wrong. Lodges its own tax return, books subject to scrutiny, payment to directors are declared on individual tax returns.

Issues that should be considered before starting up a business.

Depends on which country you want to start.

Just want to know the ways we can acquire large sums of money for running a business. How do people go about doing such a business of lending other people money to start businesses?

You need assets or cash on hand to get a bank loan.
The rest is working hard to save up atleast 65% of the total proposed business cost.
Like most Americans fail to see their strengths, some use them to start small and begin from there hard work and dedication being the only key to success.

Charisma looks and overall character also affect negotiations.

now on business tips…. sorry bub, welcome to the real world.

I want to start a business. I am an entreprneur by heart. I am pulled btween outdoor businesses and salesmarketing. I also want to learn computers. I am 29 years old and want to work for myself yet I want to get my degree too. Would it be a waste of time or the best decision although I want to work for myself?

You are doing the best thing working for yourself is the best thing to do.
you can go to this site they my be information you are looking for.
Starting your business is the best way to do it.http://www.truewealthathome.com/direct.php?id=B9081695&password=mowed6
Check this site and see if you can get some help

Im starting a business with my dad here in just a bit. I am trying to get familiar with the way running your business works such as: advertising, all the paper work (legal papers, invoice, etc), starting a website, etc. If you have any ideas id be very glad to hear about them. Thanks ; )

the title is billion dollar lessons by Paul Carrol. You might want to get yourself a nice cigar from http://www.cigarfox.com Just sit back like Denny Crane and take the whole thing in. Lots of valuable lessons.

Im starting a business that will mostly provide powder coating to build a revenue, but I have been working on some prototypes for car parts that I want to be able to provide in the future as well. Some are for looks while some would be performance upgrades. I would like a somewhat short and catchy name that people are going to remember, but not cheap and cheesy. Initials would be good like Toyota’s TRD, but it would have to stand for something that would represent my business. And I don’t really want it to be something powder coating because I really want to offer much more then that in the future. I live in Knox Indiana, so if its something with knox/hoosier in it, it might work, i dunno im kinda blank, anyone have any good ideas?
lol, ya i wasnt planning on using toyota, i just used their trd program as an example of how initials could be used, I get your point, but i dont wanna mimic some company, thats what cheap off brands do, I want to provide the highest quality of everything i provide, not a 2nd best

Finish Line Products, Fine Line Production, Outstanding Performance Products,

starting a business in texas,how much tax do i take out of the business income,and how much tax do i take out of the employees income.

contact local SBA for solid info.
contact Texas.gov site for info.