Is it better to start your own business or is it better to join a franchise?
Like anything, there are pros and cons to both scenarios and which option is better for you will depend on your unique situation. Owning your own business is a great accomplishment, but there is no denying that getting a business off the ground can be difficult and having the backing of a known brand can be extremely helpful.
Let’s look at the pros and cons of setting up your own independent business versus joining a franchise.
On Your Own
Being your own boss is a great feeling and gives you an unmatched sense of accomplishment, but it is not without its difficulties.
- You get to be your own boss.
- Once your company is established and you have the right people for you, you can step away from the day to day operations if you like.
- You can name the company/brand anything you want.
- Everything you do is for your own success.
- You are ultimately responsible for everything.
- Getting funding for your own business is notoriously difficult.
- You have to establish a brand identity from scratch.
- You have to conduct your own market research and make your own marketing materials from scratch.
With a Franchise
Getting help from an established brand can be a huge boost, especially for first-time business owners.
- You get to utilize an already established brand, saving you from having to establish brand identity.
- Market research and marketing materials are usually handled by the franchise.
- A franchise may be able to help you with funding. If not, being tied to an established brand should help with procuring funding.
- A franchise will help you get established and look for a location and may even help with designing and building a location.
- Although you would be running your own business and would be the boss, you still have to answer to a higher authority at the franchise.
- Opportunities for originality are limited since you would have to represent the franchise brand.
- While a good franchise will want all its franchisees to be successful, your own personal success will be leashed to the success of the brand you represent.
- If the brand suffers from some kind of image crisis (ie Subway and Jared Vogle) your business may suffer, as well.
Regardless of whether you choose to go your own way or join a franchise, they both provide opportunities for entrepreneurship. Joining a franchise doesn’t mean automatic success, just as trying to start your own business doesn’t guarantee automatic failure. If you’re willing to put in the work (and it’s a lot of hard work, either way you go), both scenarios can lead to a highly successful business for the right person.
[Photo courtesy of Keoni Cabral on Flickr]