If you are considering starting your own business, you have two main choices when it comes to the type of business that you plan to run. Making the decision as to whether you want to start your own business from scratch or run a franchise is not one which should be taken lightly.
And it’s important to weigh up both the advantages and disadvantages of both before you go ahead with your plans. With added benefits such as ongoing support and an established brand, many entrepreneurs are choosing franchises – but is it right for you?
How much support do you need?
Before taking advantage of a business or the best franchise opportunity available, it’s important to ask yourself how much support it is that you actually need with your business.
If you are a new entrepreneur with no experience of running a business, choosing the best franchise opportunity could be the best pathway for you to go down.
The support offered by the franchise will help you to keep risks at minimum and also put you in a better position to run your own business from scratch in the future should you wish to do so.
How much experience do you have?
If this is your first experience of running a business and you do not have any business-related education such as a business degree, you may well find that you will struggle in the future when it comes to running your own business, but with some franchises, vocational experience will do just as well, for example, if you want to run a care agency franchise, working in the care industry previously will be a great help for you.
Although some entrepreneurs who have had no prior business experience or education go on to successfully run a booming business, these people are few and far between and the number of those who fail is much higher.
However, with a franchise, you will give yourself a much better chance at success as you will be selling established products from an established brand.
Are you struggling to get funding?
One of the biggest reasons why entrepreneurs choose to start a franchise business is that it is often easier to get funding from the bank. If you have a low credit rating or are deemed as a high risk by lenders, you may find it difficult to get the funds that you need to start your own business from scratch.
However, for franchise owners, it is often significantly easier to get the funds that you need as banks and other lenders will see your business idea as being less risky, especially if you are franchising with an already successful company.
How much independence do you need?
When starting out running your own business, it’s important to know whether you will work well in an independent situation where you have all the say and control, or whether you would prefer to have a team on hand to guide and advise you when needed.
When you run a franchise, there is less independence and control than when you start your own business from scratch. Whilst this may not be ideal for others, some may find that it works better for them.
Are you convinced or unconvinced that a franchise is the right option for you?