Start A Business, Or Buy A Franchise – Which One Is Better?
Tired of working for an employer? There are many ways in which you can become your own boss – the two fastest routes are to start a business or buy a franchise. Here’s a look into both options along with each of their pros and cons so that you can decide which option is better suited to you.
The pros of starting a business
Launching a startup is excellent for those with a clear business idea. When starting a business, you have a lot of creative freedom to run it exactly how you like. You can choose everything from the equipment you use to the type of branding you incorporate. If something doesn’t work for you, you can change it. Similarly, you can grow your business as much or little as you like – you can keep it as a small side hustle or turn it into an empire.
The cons of starting a business
When starting a business, you’re on your own. Whilst you can hire people to help you such as legal advisors, all the decision-making lies on your shoulders. Starting a business can also be risky with no guarantee of success or a steady income. You have to build it from the ground up too, which takes a lot of work and potentially a lot of funding.
The pros of buying a franchise
When buying a franchise, you know that you’re investing in a business model that works. If you want to own a home care business but don’t know where to start, an in-home care franchise investment could help provide the initial framework, resources and connections that you need. You’ve also got support from a parent company if you have a problem. On top of this, you don’t need to spend as much money on marketing as it’s likely the company brand already has a large presence.
The cons of buying a franchise
Unfortunately, you won’t have much freedom to make changes when buying a franchise – you must do things the way that your parent company does, which some people may find restrictive. On top of this, there may be a lot of potential extra costs such as franchise fees and royalties. You may also be tied into a contract which is harder to terminate than it is to walk away from a business.
Which is better for you?
All in all, starting your own business is better for those with creative vision and a willingness to control all parts of the business. You’ll need to be a risk-taker to launch a startup, so bear this in mind too. Franchises offer more security and more structure and are better suited to those that simply want to get stuck in rather than innovate. You need to still be willing to follow some rules when buying a franchise, so make sure that you’re happy being the boss but still having to answer to some authority.