Why Starting an Internet Business Is Better Than Buying a Franchise

Many people who are ready to leave the rat race and create their own business consider a franchise as opposed to an internet business. This is a viable discussion; when you purchase a franchise, you get the benefit of a well-known brand, concrete business plan and instant customers, which is very attractive. However, there are some downsides to owning a franchise especially when compared to starting an internet business.

Cost

Franchises do not come cheap. You can expect to sink thousands of dollars into a popular franchise and that is just for the rights to the business. Big businesses expect that you will have an initial investment, significant credit and an appropriate piece of real estate on which to place the business. All of this will cost a significant amount either of money, which you will need in hand or through an available line of credit.

Starting an internet business is much cheaper! In fact, it is possible, though not recommended, to get started with no up-front cash at all. Blogging is a popular way to make money online and there are several free options available. It is better if you can purchase your own domain name, hosting and possibly even pay for website building but it is not absolutely required.

Rules

Franchises have a whole host of rules. Not only will the products you sell be determined beforehand but so will the square footage of your building, hours of operation, paint colours and so much more. The idea behind the franchise is that a person can walk into the business in any state and not be able to tell much difference. These are cookie cutter businesses that require a lot of customization to make it work.

When you have an online business, you are in complete control. You determine the product, look of the business, hours of operation and customer service. You are the owner and boss, which means you, will only be limited by your imagination.

Guarantees

There are no guarantees that either business model will work. More than one franchise owner has found themselves in way over their head and wind up selling. All their investment money is generally lost and they are left considering other options. Starting an internet business has the same risks of course, but you will have a lot less invested in the business and due to the potential anonymity of the internet, you will not suffer embarrassment if your business goes under!

Finally

As you can see there are several ways starting an internet, business is better than a franchise. Owning your own franchise can seem appealing but there is significant risk and a lot of money involved in getting started most of the time. When you work from home on the internet you can get started on a shoestring budget and put less at risk should the worse happen.

Shaun Broadhead is an internet marketer and success coach helping people Make Money Online To get your Free 7 steps to online success report visit www.200kperyear.com.