Franchise vs Own Business | Which One is Better?
As an aspiring entrepreneur, it’s natural to come across various hurdles before you can make it big. One of the first major hurdles you’ll have to get through is deciding whether to build something from scratch or simply go for an established name. And when you look up “franchise vs own business,” the answers might leave you more perplexed than before.
In this blog, we’ve put together the pros and cons of both paths to help you figure out which journey best serves your entrepreneurial spirit. Let’s begin!
Things to Know When Starting Your Own Business
According to a survey, 70% of entrepreneurs start their own businesses driven by the idea of upgrading their lifestyle. While it’s a fantastic path to take to enjoy long-term entrepreneurial success, it isn’t without its challenges. Starting from scratch comes with multiple ups and downs, so it’s important to consider the pros and cons of the journey before tapping into it.
Pros of Starting Your Own Business
The perks of going for your own startup include:
Complete Autonomy
Building your startup gives you complete control over everything. You’re your boss, so you can make all decisions on your own. From choosing the business model to deciding everyday operations, you can take this chance to prove yourself.
Potential for High Profits
When it’s your business, all profits belong to you. You can scale your business when you’re ready and decide how to allocate resources to maximize profits.
Creative Freedom
Starting your own business allows you to get as creative as you want — without any constraints. You’re free to design your products, build a marketing campaign, and adjust to market trends without needing approval from any entity.
Unique Brand Identity
Perhaps the biggest advantage of building a startup is that you’re free to establish an identity in the market that’s uniquely yours and belongs to your brand only.
Cons of Starting Your Own Business
The challenges that come along with building your startup include:
High Failure Rate
When you start a business, especially as a newbie, you’re likely to face multiple setbacks and failures. You’ll need to figure it all out yourself.
Heavy Workload
In a business, expect long hours of work and self-reliance without anyone to guide you.
Things to Know When Buying a Franchise
Stats reveal that in the past 15 years, over 700,000 franchises have been established in the US. This means that a lot of budding entrepreneurs would rather play safe and go for franchises instead of building their startups. Here are some advantages and setbacks to consider before buying a franchise:
Pros of Buying a Franchise
If you’re stuck with the franchise vs own business debate, consider these pros of buying a franchise:
Established Brand Name
Going for a franchise means you won’t have to build from scratch, so you can benefit from the franchisor’s established name in the market.
Pre-made Business Strategy
The franchisor has likely already put together a solid business strategy, which ultimately saves your resources — including time, money, and effort.
Trusted Customers
The best part is that customers are already familiar with the franchise and its name, so you can enjoy the perks of a loyal customer base without wasting your efforts acquiring them.
Cons of Buying a Franchise
However, buying a franchise has its cons, including:
High Initial Investment
Unarguably, franchises require a high initial investment, with the risk of losing your entire investment in case the business fails.
Limited Control
You have limited control over the business, such as marketing strategies, branding, and even supplier choices.
Franchise Vs Own Business: The Bottom Line
Now, here’s the big question — franchise vs own business; which is better?
Well, it all depends on your personal preferences. If you like doing things your way, starting your business might be a great idea for you. However, if you wish to own a business and can afford to buy some guidance, purchasing a franchise might be the way to go!