同样，选择收购一家现有企业，也有其明显的优势和劣势。例如，在这种情况下，机会在几个方面的风险较低，启动成本较低，便利设施、技术和程序已经到位。因此，考虑到已经存在的应收账款和存货、商誉和声誉，该业务可以预期立即的现金流。此外，为此类风险投资获得投资者相对容易。然而，这种模式也有一定的缺点。例如，在某些情况下，购买成本可能大于新开办的企业。可能存在一些与业务相关的内在隐藏问题和问题等(Stokes, Wilson & Wilson 2010)。
The prime advantage of choosing the entrepreneurship by the way of starting an enterprise from scratch is that generally has lower start-up costs as compared to the fees and securities given in the franchise model. However, this depends on the type and magnitude of the business entirely. It also gives higher independence to make all the business systems and decisions, like location, capacity, products and service, procedures, etc. However, there are certain disadvantages also for this model. For example, it has higher risks and uncertainty about the demand of the new product or service in the market. Also, this model cause waste of time and resources in building up the brand name and image and reaching the sales level of break even. Most importantly, the investment is at higher risk in this model. The entrepreneur is solely responsible for each and every aspect of the business from client acquisition to managing of quality, setting company procedures as well as creating market position for their products. The entrepreneurship is also exposed to various factors like, environmental, federal and legal implications of running a business, which he must be well aware of and have competency to handle these aspects (Burns 2010).
Likewise, the choice of buying an existing business, also has its distinct advantages and disadvantages. For example, in this case, the opportunity is less risky in a few aspects, it has lesser start-up costs, the amenities, technology and procedures are already in place. Thus, this business can expect immediate cash flow given that has pre-existing receivables and inventory, goodwill and reputation. Also, obtaining investors for such ventures is relatively easier. However, this model also has certain downsides. For example, in some cases, cost of purchase could be greater than new start-up. There might be some inherent hidden issues and problems in relation to the business, etc. (Stokes, Wilson & Wilson 2010).
However, for my preference of the entrepreneurship model, there are greater advantages than the disadvantages. In this model, there is provision of a Franchise agreement which gives the exclusive rights to sell the specified good or services, with legal rights to use the brand name and image to operate independent business. The franchisee though has to abide by the agreed terms and conditions detailed by the franchisor. There is provision of a usual upfront franchise fee to get the rights to do business under the franchise name and brand image. Other than this, the franchisor gets franchise royalty fee on an ongoing basis (Larty 2010).