Buying a Franchise VS Starting Your Own Business
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So which one to go? Well, I wrote this article because I want to help you making the best decision for yourself. Basically this article is talking about the benefits comparison between a franchise business and a new business. I hope you can get the idea after reading this article.
5 Benefits of Buying a Franchise
Let’s see the advantages of buying a franchise:
- There are always someone ready to help you
If you buy a franchise, your franchisor is ready to help you. You will receive a full training in the operation of your business. If you encounter any problem, your franchisor will support you.
- A ready Business System
Usually, Franchise business model is a proven model. The business system is proven money-making and the accounting procedures are easy to follow. All you have to do is manage the system and make sure it runs correctly.
- Sales & Marketing make easy
You can benefit from the national marketing. Your franchisor will handle all the sales and marketing for you. So this will be benefits if you are new to business and weak in sales and marketing.
- Enjoy the power of Brand Name
Some well established franchises provide a market awareness & brand name to their franchise. So you can enjoy their brand name effects in the market and operate your business.
- Staff Recruiting make easy
Employees are the group of people who determine how success your business will be. With a good brand name, your franchise business can have a higher recruiting pull and the chances to get a good stuff are higher. On the other hand, franchise business system also included the system on how to manage your stuff, so you really don’t have to worry about the problem of “humanâ€
Above are the 5 benefits of buying a franchise business. By paying lump-sum money, you can have a complete, proven and money-making business system. However, there are still some disadvantages of franchise business, and this will be the advantage to start a business from zero.
Reasons to start your business from Zero
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- More Freedom to run your business
You start your business from zero, so you can build your business system in any form as long as you can make money from it. However, franchisers need you to follow their guideline.
- 100% share on Profit
Well, your business is yours and you can keep all the profits you make. However, franchisors need you to pay royalty payment to them for the support operations and advertising costs. Certain franchisors also need you to share a certain percentage of profit with them.
- Low start-up cost
You can start a business at very low cost in starting. However, buying a branded franchise business is often beyond the financial abilities of many people. Moreover, you are buying the whole business system which is proven to make money. The values are there.
- You are important to your business
You may have false expectations on franchise. Franchise is still a business, and in business, the only person you can count on is you. In some cases, your franchisers may not be able to assist you and you still have to take action like you are starting a business.
- A feel of satisfaction
In certain point of view, you start your own business, manage and run it successfully. You will have the feeling of “successful†in your life. Furthermore, you build a proven business system yourself and make money from it. Don’t you think this is some kind of achievement for your life?
Conclusion
Buying a franchise will be right for you if you :
- Have the money to purchase the franchise business system
- Have limited business, sales and marketing background
- Preferred “invest and forget†investment style for your money since franchise business systems are proven money making.
However, if you cannot afford a franchise financially and mentally(you are looking for certain satisfaction), then starting your business from zero and try to learn as a true entrepreneur is the right choice for you.
At the end, the choice is yours. Take the time and consider the options and what you really want for your life, and then you will know the answer.
Good Luck!
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3 Responses to “Buying a Franchise VS Starting Your Own Business”
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Good point! If you are considering buying a franchise, make sure you will be able to follow the system. Military and teachers make the best franchisees!
[…] Harrison offers advice on whether you should buy a franchise or start your business from scratch. […]
Some well established franchises provide a market awareness & brand name to their franchise. So you can enjoy their brand name effects in the market and operate your business.