Franchise or startup? You select.
The U.S. economy is gaining steam, even though more folks are heading back again to work in a normal employment setting, others are determined the timing is to venture out in to the world of small company ownership.
And just why not?
Today, there are almost 28 million smaller businesses operating in the U.S., even though most of them began with dreams to become their own boss, what that business becomes depends on the person in control and the business enterprise model they choose.
How This Franchisee Went From Employee to Owner
As a franchise consultant, I take candidates through a rigorous procedure for self discovery to determine if indeed they will be better served starting their own business or pursuing a franchise. With thousands, if not millions, of dollars on the line, determining the response to that question is a crucial first step toward being truly a successful entrepreneur.
Both franchising and startups have their advantages, however the easiest way to determine which business design will suit you is to learn your own strengths, skills, life plan and dreams. Someone with the capacity of thriving in a startup may feel too constricted operating within a franchise model, while another person who could succeed in the supportive franchise system may wither beneath the pressure and threat of going it alone.
Wonder which business design is right for you personally? Listed below are five indicators you’d be a fantastic candidate for franchising, accompanied by four that indicate you’d be better off starting your own business.
At its core, the worthiness of a franchise is its proven style of success. While a franchisee is in charge of the day-to-day operations of their franchise, they operate within something that delivers operational support, marketing and training.
Beyond the proven style of success, franchises offer brand awareness, this means customers will know about your service or product from day one. If you’re on the trunk end of your job, franchising might seem sensible.
It’s common for many people to be unsure which franchise is best fit for you. With an increase of than 3,000 franchises available, selecting one which fits your skills and life goals is a lot easier than racking your brains on a business to start out on your own.
With many franchises, when you can successfully operate one store, you can successfully operate multiple stores. Though that is definitely possible to scale a startup aswell, it’ll likely happen faster through franchising as the blueprint is already set up.
For folks trying to work their way into entrepreneurship without quitting their day job, there are many semi-absentee franchises worth exploring. A semi-absentee model enables you to focus on the franchise for 10-15 hours weekly while continuing full-time employment. When it’s high time, you can exit your entire day job to target entirely on your own business.
This Franchisee Has Learned ‘How Sweet It Is’ to Maintain Business for Herself
If none of the features that suits you, here are a few reasons you may be better served starting your own business.
Working within a franchise system means following certain guidelines to keep your franchise license. If you’re someone that really wants to do everything the right path, franchising could feel too restrictive.
If you’ve already got your business design and are confident you know steps to make it succeed, paying a charge for a franchise’s business design may sound unappealing.
Franchises are anticipated to take into account almost $900 billion worth of economic output this season, based on the International Franchising Association. A recently available survey by FranData found a 94.2 percent renewal rate among current franchise owners. However, some individuals just can’t accept franchising as an excellent way to business ownership. That’s OK, but in the event that you realize you’re among those people, franchising probably isn’t right for you personally.
Are you a person who loves it when things fail because it offers you the chance to find out the solution? In lots of ways, franchising is like a huge back-up because they curently have best practices set up. When you’re running your own business, all the problems are yours to resolve.