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Living the Self-Employment Dream
Many people think about owning and running a business all their own, with no one to answer to but themselves.  The two most common ways of achieving this dream involve starting your own business or buying a franchise.  Each has pros and cons, and you must examine your personal preferences, business style, professional experience, and financial circumstances in order to determine which is the proper path to take.

What is a New Business?
As crazy as it sounds, the definition of a new business is…a business that did not exist before you started it.  Many new businesses are spin-offs of existing ones.  For example, you worked as a shoe repair apprentice for a few years and decided to open your own shop.  You were a Realtor with a large firm but elected to strike out on your own.  You cooked in a downtown restaurant and learned enough from the owner to open your own restaurant out in the suburbs.  Another way to start a new business involves coming up with an idea that no one else has, or recognizing a market that is under-served.

What is a Franchise?
Franchises are business operations that are part of a larger corporate entity.  Many of the businesses you see around you are owned by franchisees—everything from fast-food restaurants to muffler shops, and from you-ship-it stores to daycare centers.  A franchise can be any kind of business at all—retail shop, mobile operation (such as windshield repair on wheels), or a work-at-home business or consultancy.  There are literally thousands of franchise opportunities in all sorts of fields, with more concepts adopting the franchise model every day.

Starting a Business Pros
If you want to be the kind of boss where no one is looking over your shoulder—well, perhaps your spouse—starting a new business is the right move to make.  If you have an idea or a new product that simply cries out for exposure, you will want to profit from it by going it alone.

Starting a Business Cons
There is a fairly high failure rate for new businesses, usually related to cash-flow inconsistencies and poor management skills.  It is difficult to make a name for yourself from scratch, especially since referrals and repeat business is the lifeblood of any successful enterprise.  Your support system is limited to people you know or those you hire as consultants.  As the owner, every decision is yours—good or bad—and one wrong move could spell disaster unless you have a substantial financial cushion to break your fall.

Buying a Franchise Pros
In general, franchises have a lower propensity for failure than do new businesses.  The corporate office provides training and ongoing support.  Most franchise operations enjoy national media exposure, with the occasional local tie-in to benefit individual franchisees.  The brand is instantly recognizable, and you can count on plenty of fellow franchise owners as a support group.  Additional assistance is available to select a location and remodel a retail space to adhere to corporate guidelines.  When it comes to the purchase of inventory and supplies, the massive buying power of the home office can provide significant bulk-purchase discounts for its franchisees.

Buying a Franchise Cons
The money required to get a franchise off the ground is pretty much in line with what’s needed to fund a new business—real estate costs, equipment, inventory, and employees—but there is also a franchise fee you pay to the parent company that can be as high as $50,000 or more.  You may be only as solvent as the parent company, which is why it pays to get a peek at their books.  Lawsuits by other franchisees (for not abiding by the franchise agreement) or patrons (for all sorts of reasons) will affect a company’s ability to support its franchise owners.  Finally, running a franchise means you’ll be doing it their way.  Free spirits rarely do well as franchise owners.

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