Once you know you want to enter the realm of entrepreneurship, you have the option of starting a business or operating a franchise – both of which can yield profit and bring you fulfillment as a business owner. However, there are pros and cons to each of these options, which should all be examined before you embark on your career as an entrepreneur.
Benefits of franchises
FranSource International reports that one of the biggest benefits of operating a franchise is that a portion of your business funding will likely be taken care of by the franchisor. Capital is invested in a franchise over time by a franchisor, which can be of assistance to an entrepreneur who has bought into the company.
In addition to saving money on startup costs, a franchisee also has less to worry about when it comes to advertising and marketing. The franchisor pays for the advertising for their company as a whole, meaning you have to do little when it comes to encouraging customers to walk through your doors.
Furthermore, a reputation in the industry has already been established for you when you are a franchisee. The franchise as a whole has likely been in business long enough that it has now made its mark in the field, meaning you do not have to worry as much about establishing yourself among competitors.
“A good franchise has developed a system,” Sharad Mehta, owner of a brokerage firm, told Masterard.com. “It has a proven system. The entire operation is systemized and has been simplified.”
Benefits of independent ownership
There are many benefits to becoming an independent business owner that hold precedence over operating a franchise.
Franchising.com reports that owning an independent business means that you have full control over all matters, ranging from distribution to products. You also have a clean slate to start with when it comes to building a brand.
Entrepreneurs who are invested in business ownership have the opportunity to use less structured operations and make impromptu decisions as they see fit, according to FranchiseDirect.com. As an added benefit, independent business owners don’t have to play by the rules when it comes to updating their storefronts, whereas franchisors might require franchisees to spend money on routine upgrades.
Franchise and independent ownership each have their pros and cons, meaning it’s important to think over your options prior to making a final decision. Finding the right fit for you can help you reap the benefits of entrepreneurship.