Starting Business vs Franch

Starting an Own Business vs Buying a Franchise – Which is Better?

Posted on |Business and Finance|| 0

Starting Business vs FranchIf you’re ready to go into business for yourself, there’s a lot to consider. For some, starting an independent business is the perfect way to achieve this dream. But for others, the risks and self-dependence that come with starting your own business may be a deterrent. If you fall into the second group, buying an existing franchise might be a better call for you. Purchasing a burger franchise opportunity, for example, gives you much of the power and flexibility that come along with business ownership but diminishes the risk involved.

Before you determine how best to go into business for yourself, consider the differences between these two models of business ownership and decide which is best for you.

The Pros of Franchise Ownership

Buying a franchise is generally considered the simpler route to business ownership. Here are some of the pros that might make it a better choice for you:

  • Brand Recognition. Brand awareness is an important key to business success. If you’re starting from scratch, you’ll have a name, logo, and product that no one has ever heard of. But if you purchase a franchise, you’re likely to be working with a brand that has an existing customer base, giving you a head start out of the gate.
  • Guidance and Support. Franchisors are generally in the practice of providing their franchisees with as much help and support as possible – after all, your success is their success! You’ll be able to access things like training, marketing assistance, and general support from the corporate office, all of which are invaluable when it comes to business success.
  • Security. Small business owners must fear for their own success or failure. As part of a franchise, you’re a bit removed from this worry. Although it is possible for a franchise location to fail, the corporate office will help you stay on your feet a bit longer than you might otherwise have been able to. Independent businesses have no such resource to back them up.

The Pros of Starting a Business

Although franchise ownership proves to be the right decision for many, for some people the draw of starting their own business is much more powerful. Here’s what staying independent has to offer:

  • Freedom. You make all the decisions about your business, a fact that for some are worth its weight in gold. Want to change up the menu of your restaurant? Go for it. Want to redesign your logo? You’re the boss! If personal freedom is something you value, this path might be best for you.
  • High Risk, High Reward. Yes, starting an independent business is riskier, less secure. But if you succeed? The return on your investment could be huge. After all, you have no franchise fees to pay, no profit margin due back to the franchisor. Your success is all your own.
  • Personal Accomplishment. For many, the feeling of personal accomplishment that comes with the creation of their own small business is a deciding factor. To point to your business and know that you brought it into the world is a unique feeling and one that can’t be achieved by buying a store in a larger franchise.

Whichever path you take, there are benefits and risks to be considered. But whether with a franchise or an independent business, you can find great success. Good luck!

Amy Adams Author

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