The disadvantage of a standalone business however pertain to the increased risk that the company has to bear and the limited resource for funding and support that are available to the business.
“Of course, with greater flexibility and full control comes increased risk. After all, as an independent owner, the business is contingent on your decisions. For this reason it is not always easy to obtain the necessary financing without an established track record of running such a business.” (‘Should You Purchase a Stand-Alone Business or a Franchise’, 2008, p2)
Moreover the business is solely responsible for establishing new relationships with suppliers, clients as well as vendors, distribution agents, media contacts and developing the marketing campaign of the business.