When starting a business in Tennessee the entrepreneur may find that it is necessary to conduct a risk assessment evaluation of the applicable pros and cons of the project. How much risk will the investor take on to achieve a certain level of rewards? Where the precise business has not yet been selected, one may also have to evaluate whether to purchase a franchise or set in action a new startup. These are all business and corporate law issues that arise in the early phases of planning.
The personality of the entrepreneur may play a part in such decisions. For independent thinkers who want to create a new business like a painter maneuvers through a canvass the choice will tend toward a new startup. The person who wants to avoid making out-of-the box mistakes and who is more cautious may prefer an established franchise. However, if one needs a broad scope of freedom in the creation and management of the business, the franchise is not likely the ticket.
As one can imagine, a franchise is a preset contract in which the standards and practices are set pretty much in stone. Of course, with that rigid approach one also gets an established brand, a marketing plan, and a product that is tested and has succeeded on various levels. One who seeks to create a business that is not guided by prior specifications must accept a greater degree of risk. That person must also engage in intensive procedures of creating a brand, coming up with trademarks, logos and other marketing identities, along with a host of other wide-open issues to be resolved.
With a new startup there is no safety net similar to that provided by a franchise. A new startup entrepreneur in Tennessee and elsewhere will also be initially without a business and corporate law clue about many financial and legal issues. Questions will also prevail regarding financing, how to get it, how much is needed, what equipment to obtain and many other queries. The franchise provides many additional services and support mechanisms. Those who demand a certain security before taking on risk will gravitate toward the franchise.