Should I build a business from scratch or just buy a franchise?
This is a common question that people who would like to go into business often ask.
And in this post, I will try to give you some advise on which one you should choose.
But first, I would like to say that in both cases, at the most basic level, YOU are simply starting a business or more appropriately – entering entrepreneurship.
This means that above all else, you should check if you already have the proper mindset to nurture that entrepreneurial spirit in you.
Ask yourself: Am I ready to be an entrepreneur?
If you are indeed ready to have a business, then the next logical step in resolving our question is to see if you are ready to become a franchisee.
In my previous article on Buying A Franchise Business, I enumerated seven facts about franchising that you should know. Check out this list and see if you fully understand how buying a franchise business is different from building a start-up.
Some business franchising facts:
- It is normally less risky than starting a business from scratch.
- Having previous business experience is not required.
- It is usually more expensive than doing a start-up.
- You need to strictly “follow the manual”, which also follows that you will be confined to the products and services that your franchisor offers.
- Franchising is a shared success. Being a franchisee means accepting your role and position “within the family”.
So assuming that you are comfortable with these terms BUT at the same time, you are also confident that you can likewise start your own business from scratch – which path should you now choose?
Alas we come to our tipping point and unfortunately, there is no straightforward answer. However, I have these points of consideration which should help you decide.
The strongest argument for buying a franchise is brand recognition. Getting a popular franchise gives you a higher rate of success. If you don’t want to burden yourself with creating your own brand, then go for that franchise.
But if you have your own vision for your business which you passionately want to turn into reality. Then by all means, make your start-up.
If you have little or no business experience and you want someone to guide you and teach you how to manage your business, then franchising would be your best option. Getting a franchise will introduce you to a large support network which can motivate you to succeed.
However, if you are excited to discover and learn the world of business on your own. If you are resourceful, hardworking and willing to make mistakes along the way, then I encourage you to start your own business. If you succeed, then you can proudly take all the credit and say, “I did it!”
A successful business will ALWAYS have proper controls and effective business systems in place. Franchising will save you time on this aspect which means you can immediately focus on sales and management.
But if you’re willing to dedicate the time to study, innovate and implement your own business system and most importantly, be willing to learn by trial and error to improve your business processes, then bootstrapping your business is the way to go. And the best part of this is – someday, you could be selling your business system to your own franchisees.
How about you? Are there any more pointers you can share with regards to this topic? Have you personally made this decision in your life? Do share them below and let’s discuss.
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