This post was written by Lucas Parker and is shared here with permission.
Are you a creative person? Do you have hundreds of ideas, and you’re looking for a chance to begin working on them? You might want to start a business, as you will have all the freedom you need. On the other hand, buying a franchise also has its merits. The franchisee is given instructions and training, along with ongoing support from the franchisor. While a franchise has a higher success rate than a standalone business, these types of contracts restrict how, where and with whom you work. Also, if you find that your personal company might not prosper, it never is too late to close down and join an existing enterprise.
Making the Decision
While there exist many articles that compare fresh businesses and franchises, the decision ultimately falls on you. Depending on what your expertise is, what you find interesting and what you value the most, some of the cons that both sides carry are not going to seem as bad to you as they will to others. For instance, there are several reasons as to why people engage in a private business, whether it be because of a new idea that is sure to prosper, to monetize a hobby or even to challenge themselves. However, many of them don’t explore as much as they need to. What can you do with your ideas? Will you be able to do more if you work alone, or under specific instructions? Everyone has their own way of doing things, so maybe you should ask your friends and family for help. Presenting the idea to a few people close to you will certainly narrow down your choice, as you’ll get some feedback first-hand.
The Ups and Downs of Starting Fresh
Feel like beginning? You can start already, because setting up an online account, buying a site and a license can be done in a few hours. Finances will also prove not to be too big of a problem, as you will have no need to pay employees or buy campaigns. How much time you invest into the project is completely up to you as well, but work is unavoidable if you’re looking to get to the finish line. You are independent, and as many benefits as that carries, having a private business is similar to a double-edged sword.
As sales bloom and the popularity of your product rises, the feelings of pride and fulfillment become an astounding motivator. However, if a project fails and there are significant financial loses, you are left to yourself to find a solution. In later stages you might find a business partner and you will have someone to rely on, but you’re likely to be alone through the initial push of getting into the market which is the hardest, and most important step.
Also, having foresight and asking for advice is important. Competition is often fierce, and whether there truly is a need for your product is something that needs to be researched. Maybe there are companies nearby that already offer services similar to those you wish to engage in? This is often the biggest and most common problem in today’s market.
Why Buy a Franchise?
Actually, there’s a number of answers, depending on your goal. First, prior experience is not a necessity in order to start working. As already mentioned, a franchisee receives clear instructions and is trained on how to run the business and manage employees, and the ongoing support often leads to success. Also, if something goes awry, you have the support of the company, as you are part of a team. The second reason as to why people choose to buy a franchise is that it is a tried and true system; it rarely fails and is most often sure to lead to profit with minimal financial investment, but that doesn’t mean it can go without devoting time and hard work.
Another point as to why you should buy a franchise would be the instant recognition. Certain brands are well known, and customers will know of your products from the get-go. The already established reputation and access to nationwide advertisements helps tremendously, in an indirect way. Apart from connections, the resources and workers that are managed by the franchiser are often irreplaceable, as they create many new opportunities. And franchise agreements are often to last a decade or two, and as such they provide constant employment status.
A Backup Plan
The risk of investing into something and not having it reach its full potential can be truly defeating. You’ve started a business and it doesn’t look like there’s a bright future in store for it, what should you do? Some businessmen have hope that things will turn out for the best and try to get through the rough times; others leave their ship as soon as they notice it’s starting to sink. Getting out of trouble as soon as possible is the best way to save money and time. If the worst comes to pass, what’s next? Do not let your passion dwindle, as you can surely find a new use for it. Being in charge doesn’t suit many people, and that’s no reason to be ashamed. Find a company that endorses your type of thinking and your way of work; find a way to make a great impact.
Is it too late to buy a franchise? Never. Employers often take every chance they get when it comes to prospective dedication, talent and hard work. If at one point you think of a product that is sure to sell but no one wants to listen, it’s not too late to start on your own, either. There are many people who realize that strict working conditions don’t suit them, they need freedom in order to fulfill their potential. Before choosing whether to start a business or buy a franchise, you should do research and ask yourself a few questions. What do I value the most? How much money and time am I willing to invest? And last but not least, what am I trying to achieve? It is important to set a clear goal, along with understanding the reasoning behind your choice.