Preparation

• When you buy a franchise, much of the groundwork has already been laid. Goals and objectives come prepackaged, along with the concept, design and target market. Before buying a franchise, find out how well the business has succeeded in areas with similar demographics to your town. Consider whether you could provide this population with a product or service that better suits their needs if you started from scratch with your own business. If not, you may feel you have no reason to engage in the intensive planning of a new venture.
  
  

Costs

• Starting a franchise usually costs more than starting a new business, according to William Barnson in his book "Bounce Back Like a Champion." However, he adds that the franchise comes with less risk, meaning you're more likely to earn a profit. When starting a new business, people often save costs by working from home and not hiring employees until business picks up. Consider whether you're in a position to invest significant funds in the business, or wish to gain investors or loans.
  
  

Motivation

• Consider what motivates you to start a business. If you mainly want the satisfaction of working for yourself and having a financially secure venture, a franchise might be right for you. If, however, you love to use your creativity and get annoyed when people try to tell you how to do things, you'll probably prefer your own distinct enterprise. In fact, you probably have some ideas already.
  
  

Experience

• Also consider your business acumen -- do you have a lot of experience or a clear plan based on your business education and research of the market? If not, consider whether to start by purchasing a franchise. Think about whether you tend to follow through with projects you start, or whether you love the brainstorming phase but then get lost in the details. If so, a franchise could provide the guidance you need to learn how to manage a business.