Starting Your Own Business Versus Becoming a Franchisee

During other periods of economic downturn, many people who lost jobs and regular salaries found hope in starting their own business and becoming entrepreneurs. Sometimes it takes a firm shove to get people to focus on what would otherwise have remained as dreams. Starting a franchise has many pros and cons that we will revisit from time to time on this blog. Here are a few that you may want to consider:

Benefits of Franchising:

• Training, Support and Experience. Many franchisees enjoy the idea of not having to "start from scratch" with a new business.
• Established business plan.
• Proven methods and Technology.
• Marketing assistance. Many Franchisors have national campaigns that can benefit local franchisees.
• Recognized brand name.
• Collective purchasing power from vendors.

Benefits of Starting Your Own Business

• No royalty fees.
• Freedom to relocate or sell other items.
• More creativity in how you sell your product.
• Start up costs may be lower.

These are only rough generalities. Not all franchisors provide the experience and training that you might need. Some may micro-manage you to pieces. Also, much may depend on the type of franchise you purchase. Some industries are growing while others are somewhat stagnant. Also, it doesn't help to pick a franchise performing work you will not enjoy. Many franchisees find that it suits them best to pick a franchise based on a personal interest or type of personality. Those who tend to work well on a team find franchising appealing. You work for yourself, but not all by yourself.