If you’ve already begun your search for business ideas, you’ve most likely run across the concept of a franchise. The International Franchise Association defines a franchise as this: “…a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.”
Now that you know what a franchise is, you’ll have to decide whether you will choose to open your own business or buy a franchise. Let’s talk about that.
Time-Tested and Approved
When you buy a franchise, you’ve been able to watch such a business model’s growth and popularity. All of the hard work and risks have practically been completed for you, and now you need only continue the upkeep and proper management. Instead of stepping out on a limb and starting your own business, you’re able to take the reins of a successful business and run with it. This allows you to free your mind of all of the initial start-up worries and simply focus on working hard to manage and maintain their excellent status.
However, this can be both a blessing and a curse. If you choose to start your own business, the opportunities, ideas, and innovations are limitless. You have the ability to select the exact business idea and mission you desire, directly control the management and business model, and have full ownership over all of your hard work and efforts. You might run into some hurdles that you would otherwise avoid when buying a franchise, but ultimately you will have to decide if the benefits outweigh the ease.
Purchasing an established franchise almost guarantees that you will have fantastic marketing. Think of your favorite chain restaurant or shopping mall. It’s most likely a well-known name and wouldn’t go under if it lost a week of advertising, right? This is the case for most franchises. Since they are popular enough to be located across the states, they’ve had to go through an initial marketing spree to get their name out there, but now they have no issues bringing customers in day after day.
When you open your own business, all of the marketing and advertisement fall on your shoulders. Your company’s name has yet to be around for decades and may need a little push in the right direction. You will be responsible for getting your business’s name out there and for ensuring that those around you know you’re there. For some business owners, advertisement is like second nature. For others, it could be slightly more complicated. If you’re confident that you have the resources and know-how to broadcast your new company to the whole region, then, by all means, do so! If this might not be your strong suit, you may consider looking into buying a franchise.
Purchasing Necessary Supplies
Franchisors have invaluable information and guidance when it comes to purchasing supplies and equipment for your chain. They’ve been in this business much longer than you might be, and because of this, they’ve learned the ins and outs of running their kind of business. From knowing exactly how many taco baskets you’ll need to buy to understanding the best seasons for particular purchases, they have it down pat. This can help you to avoid buying too much and wasting your hard-earned money or purchasing too little, which will result in panicked calls to the manufacturer to see how quickly they can ship your items to you.
If you choose to run your own business, you may find that you periodically overestimate your needs, but ultimately you will learn and have the potential to seek new solutions to the problems. Instead of getting stuck in a rut because that’s how it’s “always been done,” you’ll be able to step out and become an innovating entrepreneur. You’ll also have more control over what you buy, the standards you hold your company to, and when it’s time to move on from a resource that will no longer benefit your business.
It’s Your Decision, No one else’s.
Ultimately, this will be your business, and no one else’s. No one can choose for you, and this is a decision you will have to make as a budding entrepreneur. There are pros and cons to both choices. How do you weigh them? Though a franchise might be a safer and more comfortable option, starting your own business might give you the freedom and autonomy you’ve been craving. If you choose to start your own business, TRUiC has provided insightful information and invaluable resources on their website, which you can find here: https://howtostartanllc.com/start-a-business.