Business ownership means having the control over a business enterprise and being able to dictate its functioning and operations.There are three ways in which business ownership may be acquired- initiating a business, purchasing a company that is already existing and franchising.
Starting a Business
Starting a business enterprise on one's own is one of the three main types of business ownership. There are several benefits of this process. First and foremost the business owner retains complete control over the entire business and is not answerable to any one else as he is not contractually bound to do so.
The owners also get the opportunity to introduce new products and services, new plans of business expansion and a lot more.
Franchising is one of the various ways in which one may acquire business ownership. The franchising model of business ownership is a combination of start up as well as existing business ownership. Franchising means obtaining the rights to market the products of another company that are already well established in the market. The main advantage in this case is that the risks related with establishing a new business is not involved here. At the same time, the owners do not have to establish much time for establishing their business in the market.
Acquiring Ownership of Existing Companies
Yet another way of getting business ownership is to buy out a company that already exists. This offers a number of advantages like reduction in the time as well as expenses that are incurred in setting up a new business. There are other advantages like a ready made client base and an already established chain of suppliers.