Thursday, March 27, 2008

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.

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