There’s no time like the present to kick-start your own business, since the global landscape is developing at a head-spinning speed, making room for new companies sprouting around every corner. However, the business model you choose will determine how successful you end up being. We all have different aptitudes and not everyone is cut out to be a solitary leader, an innovator, or a manager, for that matter. That is why learning about available opportunities can help you decide if you will find yourself happy and flourishing as a startup owner, or a franchisee.
With that in mind, let’s take a look at a few key factors that play into this complex equation, so that you can make an informed decision and proceed carefully into the blooming ranks of business owners, no matter which model suits you most.
The question of branding
Having a brilliant idea is far from enough to get your brand on the market and empower it to appeal to the masses. In fact, most business owners recognize that their greatest struggle isn’t in the process of finding a profitable business idea, but one of launching it properly to make sure you have your spot in the current market. This is where franchises steal the spotlight as the superior choice for any business novice trying to start anew.
A startup comes with the challenges of defining a new brand, whereas working as a franchisee means you will be under a more experienced wing of a brand with a powerful reputation. While you will need to invest effort in the right marketing strategies to disseminate your new branch, a franchisee’s job in terms of branding carries far less risk than that of a startup owner, significantly improving your chances of success.
The importance of support
While we’re on the subject of marketing a particular brand, no matter if it’s a new or an existing one, even solopreneurs need the advice and guidance of their more successful predecessors in the industry. If you already know what does a franchise mean, you understand that the model comes with built-in support systems that not only give you a strong reputation, but clear roadmaps to take in order to make your presence known for your target demographics.
Franchises, unlike startups, enjoy the benefit of ongoing support in every possible aspect of running that business. It’s in their best interest as well as your own for your new franchise to succeed, which means that they have already had their fair share of mistakes and blunders to fix before they’ve reached this phase of expansion and growth. You have the opportunity to learn so much from your parent company, whereas a startup owner often stands alone in the face of the rising competition in their niche.
Financial implications
This is one of those rare moments when starting your own company from the ground up and opening a franchise may be, so to speak, a “tie”. Simply put, it takes significant investments for both not just to open, but also to run smoothly, no matter the size of the operation or the complexity of your target market.
While every franchise may come with a different franchise fee needed for the initial investment, you also need to factor in the necessary overhead costs of running that business effectively and in accordance with the existing brand expectations. However, the very same can be said for your startup, as the unforeseen expenses can often trump the one-off capital of a franchise, and the lack of support and education can only exasperate the financial predicament, as few startup owners can afford too many mistakes.
Embracing the learning curve
As for the education process, those who consider themselves to be self-starters and lone-wolves may find the hierarchical structure and brand guidelines of a franchise to be restricting. On the other hand, the training sessions that come with the territory of operating a franchise also allow you to avoid too many learning mistakes on the job.
It all depends on the franchise structure at hand, but you often get on-site training, guidance, phone support available any time during your work hours, and regular off-site classes in a variety of management segments. From accounting, to PR, HR, and marketing, a franchise system helps you get a firm grasp of working knowledge behind all of these and many other aspects of running a business. Could you say the same for running a startup?
Innovation
The world is always looking for a new take on an existing problem, or a fresh idea to enlighten us. However, few can really say that their own innovative idea will actually change the course of civilization, as reinventing the wheel hasn’t been many people’s forte for ages. Still, even a new twist on an age-old issue is more than enough to tickle our imagination – which is precisely why so many people enter the startup waters. However, franchises also allow a certain level of innovation. You may need more time to make it happen, to introduce a new line of products or services approved by the parent company, but if innovation is the driving force of any brand, your franchise will be no different, even if it means taking a slightly longer road to get there.