Many people in Alaska dream of escaping the rat-race and owning their own business –perhaps having to do with hunting, fishing or other outdoor activities. However, not everyone wants to start a business from the ground up. These individuals may be interested in learning more about two options: franchising or purchasing an existing business.
Franchising
Through franchising, the franchisor business owner sells the right to their name, logo and operations to a franchisee independent entrepreneur. Common franchises include restaurants and hotels. There are two main forms of franchising. One form is product/trade name franchising. In this case, the franchisor sells the right to their name and trademark to a franchisee with a focus on managing the supply chain. The second form is business format franchising which involves a continuing relationship between the franchisor and franchisee, focusing on business management including business site, training, products and marketing. In both forms the franchisee must follow the rules of the franchisor about how the enterprise is run.
Purchasing an existing business
Purchasing an existing business is pretty straightforward. The buyer obtains full ownership of the enterprise. When you purchase an existing business, this includes the established customer base, operating measures and expenses and trained staff. Generally, any kind of business can be purchased. Unlike franchising, however, the independent business owner does not get any infrastructure, marketing or guidance from the previous business owner.
The choice is yours
Ultimately, those who want to get into franchising or purchasing an existing business will want to determine how much they are willing to spend on the enterprise, examine their talents and lifestyle and examining the existing infrastructure of the business being sought. This will help them determine what type of business is right for them.