Which one is better for you?
Choosing an existing franchise or building your own new business can blow your fuses when considering every possibility. Choosing between a franchise and your own startup can be quite problematic. Either option has advantages and risks associated with it that should be considered before embarking. There is no straight or simple answer. You have to figure out what works for you best. Begin with an assessment of the realities, the possibilities, and the comparison before making a final choice.
A franchise offers a tried and tested business model that takes the guesswork of how to get up and running out of the equation before you start on the journey. You pay the franchiser a franchise fee to license the right to use the name and processes of the business. All franchisees operate under a common system and they are only responsible for their day to day operations. Also, they get trained about the product line, marketing, how to deal with staff and other aspects of their daily activities. Basically, they get ongoing support for their businesses which brings them success. If money isn’t the constraint then it is the ease, convenience and quick turnaround time of buying a franchise that might woo you at first. Buying a franchise is indeed easier than starting your own business as it would minimize the risk of going out of business but on the other hand, would cost a fortune.
With your own start-up, you will have the opportunity to start from the bottom level or ground level. For some, this is incredibly exciting and for others, it can be quite intimidating. This situation is best for those that have a unique business idea that has not been done before. Setting up a startup needs innovation and creativity. If you are a highly creative person full of different ideas and those who want to exercise a high degree of control over how their business is run and how decisions are made, it would be you who will call all the shots, should go for a start-up.
The reason why most contenders consider buying a franchise is because of the proven track record. A company’s success, the popularity of a product or service, it is much safer to invest in. This means, your chances of success would be higher. Customers here will know about your products which will increase your sales because the company would bring their brand recognition with the franchise. The franchiser will then often assist you with selecting your location, setting up your store, connecting you with their suppliers, training your staff, and getting your business up and running.
When you have your own start-up, you can work anytime you want. Also, depending on your business, you can work anywhere you want. You don’t need to report to other people. This means you have your own professional freedom. You will have to create and grow a brand, develop an aesthetic for your locations, decide what types of goods and services you will offer, and implement all of these decisions. This can take a significant period of time. But the higher risk always rewards a higher return. When going for a start-up, you can always experiment and toy with various ideas and put it to test otherwise forbidden in a franchise.
Whatever the decision you would take, it is always wise to do a survey before jumping in the water and then finding it too deep. Franchise agreements can be complex while starting your own business you will have to navigate through a lot of information. If you think your business idea is better than the kind of franchises available then you should launch your own startup.