Are you deep in contemplation over whether you should become a franchisee or start your own business? Both of these options have select benefits. In the long run, weighing the pros and cons of each can help you make the best decision to fit your skill set and lifestyle.
Pros and Cons of Franchising
Franchising has many positive features that can make running a business a smooth and simple process. These features include:
Buying Power – You can save a lot of money with a franchise because a network for supplies will already be in place. Typically, it is cheaper to buy from this network than going it alone.
Training and Support – The franchise owner will train you on how to run your business, plus provide technical and emotional support if situations become difficult.
Instant Branding and Marketing – A franchise already has an existing customer base, name recognition, marketing campaigns and branding. The franchisee has little to do with developing or implementing marketing/branding campaigns.
The biggest downfall to franchising is that it can leave you feeling restricted and controlled. A franchise is very much like a long-term lease. You can’t just decide to stop doing it one day; there is a certain level of commitment and dedication required to carry out your responsibilities.
Pros and Cons of Going Independent
Independent business ownership also has many positive features. These features include:
No Extra Fees – As an independent business owner, you will not have to pay annual franchise fees. This means you get to keep every cent you earn.
Something New Every Day – An independent business is always changing, and there will be opportunities for growth around every corner.
Creativity & Flexibility – You can develop custom procedures, services, marketing and branding to meet the specific needs of your community.
The biggest downfall to independent business ownership is that it forces you to assume so much responsibility. You must have the right combination of knowledge and skills to make it work, as well as a dedication to working long hours.
Weigh Your Options
In a nutshell, a franchise offers security to inexperienced or unskilled individuals who want to try their hand at running a business. If you are a true entrepreneur, chances are that you possess knowledge, skills and creativity that would be suppressed in a franchise situation. Weigh your existing skill set against the safety net provided by a franchise to see if your strengths outweigh the costs and restrictions associated with franchising.