As an aspiring entrepreneur, many potential business owners are faced with the decision of whether or not to start the business on their own or to work with the support of a franchise model. The question is, why do people invest in a franchise over starting a business on their own?
Like any big decision in life, emotions and personal feelings can some times get in the way of making a truly effective business decision. Before approaching this important decision, it is critical to remove as many of the emotional aspects of this process as possible. Really good business decisions NEVER include emotional distractions.
When considering the differences between a franchise or a stand-alone start up business, you should weigh the pros versus the cons involved in deciding whether a franchise is a viable choice, my recommendation is to put together a complete SWOT analysis and compare the franchise versus the start up business model. Be open and honest and list the differences on a chart to fully understand how they match up against one another.
Typically, the strengths that a good franchise system will bring will include a proven track record of business along with a blue print needed for you to build your new operation. Having this plan based on experience and actual business practices will provide you with a strategic planning advantage and the confidence and understanding of what comes next in your new business. A good franchise model should also have the backing and support of an experienced and dedicated management team. These leaders will act as mentors to the franchisees and will support them in their business growth as they operate the new business and scale their growth. If you invest in a developed franchise model with a substantial amount of units, you should also benefit from economies of scale on the supply side as well as the marketing and advertising side of the business. In general, franchises should provide a higher success rate than start-up operations.
When making the decision whether to start a new business or buy into a franchise system, go through the facts and weigh the value against the costs of choosing either to buy a franchise or start a business on your own.
For more information on how to buy a franchise, contact us for insight and support as you go through this process.
FMS is a team of expert franchise consulting professionals based in Canada that provides solutions for franchise development, franchise consultation, and expansion of businesses globally.