When considering if you should start a business or buy into an existing one, there are several important factors to evaluate. If you know that you want to run your own venture but can’t decide which path to take, creating an overview of the pros and cons can help you decide which is preferable for your situation and your personality, especially with the assistance of a franchise consultant.
Overall, investing in a franchise means that proven processes and systems are already in place. Beginning a business from scratch can be far more time-consuming but offers complete control over the model. At FMS Franchise, we’re here to help break down the honest advantages and disadvantages of each option so that you can come up with a clearer choice as to whether you should build your own business or buy into one.
Pros Of Starting A Business
The biggest benefit of starting a business from scratch is having complete control over everything from marketing to management. For budding entrepreneurs who dream of being their own boss, the ability to be self-employed, make every decision, and set the schedule is very appealing. Many choose to start an enterprise from their own home, which with the progression of technology is easier and more affordable than ever. If you have a vision and the drive to begin from nothing, then launching your own business could be the right move for you.
Cons Of Starting A Business
A major drawback of starting a new business is that its success or failure depends entirely upon you. It’s a complex, stressful, and time-consuming process that requires a great deal of work from researching market trends to creating budgets. Building a brand identity and customer base is no easy feat. There are a lot of unknowns to navigate and it can require a great deal of personal investment before becoming profitable. It’s no surprise that the failure rate is high, with 90% of startup businesses not surviving the first year.
Pros Of Buying A Franchise
The decision to buy into an existing franchise business comes with plenty of pros such as brand recognition and a trusted reputation allowing you to tap into an already established potential customer base in your territory. If you invest in an established franchise operation, you will be provided with all the tools and systems needed to run it successfully without needing to learn how to franchise. It offers an opportunity to invest in a turnkey model that comes with a successful track record, proven training program, strong supply chain, and tons of technical support ultimately lowering the risk of failure. The proven business model and operational support of buying a franchise is a huge advantage.
Cons Of Buying A Franchise
When buying a franchise as opposed to starting your own business, consider the fees that come with the model from monthly royalty percentages to initial franchising costs. It also removes a lot of the choice compared to considering how to start a franchise as there will be predetermined operational systems to follow. Before taking the leap, consider if you would be comfortable with the idea of being tied to someone else’s image within the industry. In the end, you may run the business, but the franchisor is in charge of most decisions. Starting your own business might be a better idea if that sounds too restrictive.
Ultimately we recommend choosing the option that will benefit you the most by weighing the pros and cons. As a premier franchise consulting company, we believe that franchising is a good investment whether you figure out how to franchise your business or buy into one that already exists. Regardless, we are here to offer entrepreneurs a way to run a successful operation that suits their needs. Our expert franchise consultants provide industry insight and support services for both emerging and established enterprises learning how to franchise a business so they can develop and expand into a successful empire!