What’s Safer: Buying a Franchise or Starting Your Own Business?
Have you always wanted to own and operate your own business? Given that there’s a high failure rate for independent, non-franchise businesses, you might want to consider buying a franchise instead. After all, franchising provides a proven system coupled with the support of a larger organization – invaluable pluses for first-time and therefore inexperienced business owners.
A few key advantages singular to buying a franchise include instant brand awareness and credibility, administrative and/or technical support, quicker return on investment, strong management, franchisor-provided training, and a franchisee network devoted to supporting fellow franchisees.
Franchisees are generally supported every step of the way from a variety of people vested in their success. For example, fellow franchisees often compliment their comrades’ marketing programs – multiple franchisees tend to benefit from a single fellow franchisee’s promotional event or commercial, and an independent business owner’s interest can help franchisees open additional outlets.
Without the support of an established marketing team and resources, independent business owners have to compete with the brand-recognition and advertising weight wielded by franchises. It may be difficult, as an independent business owner, to get your name out there, let alone establish yourself. You may have to put all your energy into operations and be forced to neglect other aspects of running your business. For example, you will be trying to figure out the basics, such as who will drive your sales campaign and bring in customers.
Sure, there’s more creative autonomy involved in owning an independent business rather than a franchise, but is this worth the risk of possibly being unable to make it in cut-throat but lucrative markets such as the food service, hospitality and/or retail industries? That’s up to you to decide.