There are several factors to consider when you decided to become a business owner. One of the most important aspects to consider is whether you should start your small independent business or look into franchising. There are pros and cons that come with both types of business and these are the most important ones you should consider when purchasing a franchise license or going into the market as a small business:
Systems In Place
When you decide to go for a franchise it comes with many systems that are already in place. This may include computers, operating systems, and marketing systems. With things in place, you really don’t have to worry about the basic Ways to run a successful business but rather focus on running it. These are very helpful for someone who has no previous experience with important systems like these. For a small independent business, you have to come up with these systems yourself which takes time, effort, research, and a lot of learning from mistakes. Winner: Franchising
Training your staff requires a lot of expertise and time. When you go for franchising the training is part of the franchise agreement. They will offer modules, training programs for you and your staff, and other resources you can use that will help you effectively run the store. This is not an opportunity you get from starting your own business. Winner: Franchising
Rules And Regulations
When you buy a franchised brand you have to stick to their strict rules and regulations. They have a system in place that you must follow closely since it is part of the contract you signed. Your staff are also bound to follow these rules to uphold the name of the brand. With your own small business you have the liberty of being as relaxed as possible. You can set up rules for your staff, but you yourself don’t have to follow every detail, this means you have more freedom to do as you please. Winner: Own Business
The good thing about franchising is the brand is already marketed and you don’t have to do the promotions. The bad thing about reputation is when the franchise does something to offend people your brand can suffer the consequences as well. For a small business you have to build your brand’s reputation from the ground up which is hard to do, but since you are in charge of marketing and promotion you have control over reputation management as well. Winner: Tie
Another pro that comes with purchasing a franchise license is the support system that comes with your contract. When you join a big business and you are promoting their brand they will provide you and your staff with endless resources and support. Everything from promotional flyers, posters, deals, and other marketing strategies are given so you don’t need to worry about it. When you are a small business owner you have to do almost everything on your own. Without proper support you can easily down in worries and financial burden of supporting your business. Winner: Franchising
A franchise is a good way to introduce yourself into the world of service. You get all the training you need, and when you are more confident with your marketing skills you might be able to successfully jump into a small business owner after!
Have you made the decision to set out on your own and become an entrepreneur? Learn the differen ways to run a successful business and earn the status and money you deserve.