Many people dream of starting their own business but often find the idea overwhelming. They have a variety of fears about what it will be like to start their own business, and it can feel daunting to take that first step. They ask themselves, why should I start a business? Do I have the skills and character to start my own business? What’s a good business to start?
The reality is there are a lot of different ways you can become your own boss. Franchising is a great option for individuals who are looking into business ownership opportunities. It can be lower risk and comes with guidance to start you on a path to success—a mentor and guide helping you overcome fears of starting a business. With franchising, you aren’t going at it alone and can have the support of a national brand, like Neighborly®, to help guide you along the way.
Here are four common fears about starting a business, and why you shouldn’t be scared when attempting it:
#1: Fear of The Start-Up Costs
The first fear you may face when you start a business on your own or with a franchise is the cost. In both instances, there are initial non-negotiable start-up costs. It's important to have a game plan for how you will fund your business and take into consideration additional operating costs.
Franchises Have Upfront Costs, But Can Be Easier to Get Funding
When you start a franchise, you will be provided with estimated initial costs, initial franchise fees, and operational costs. Franchise owners often find it easier to obtain a business loan or financing compared to someone seeking to start a new independent small business because franchises have an established brand and proven business model, which can often be seen as carrying less risk to lenders.
There are many paths to franchise ownership, but they all start with funding. Some owners choose to use their existing capital, which is usually money they’ve built up from a savings account, rollover from a retirement account, or income from another business. Others opt to secure a loan from a third-party lender like a commercial bank or the Small Business Administration (SBA). There are also owners who get started with a loan from family and friends or choose to take out a line of credit.
No matter how you get off the ground, the important part of funding is understanding the terms, which includes payment amount, interest rate, and schedule. The cost to invest in a Neighborly franchise will vary by brand, industry, and territory.
#2: Fear of Losing Job Security
Leaving a steady salary and the security of a corporate career to take on the challenge of business ownership can feel like a significant risk. It can be scary if you are investing a sizable portion of your savings into a business.
Franchising Offers Stability and Flexibility
One of the major benefits of starting a franchise versus starting a business from scratch is that you should be up and running faster. By having a proven business model, brand recognition, and designated territory, franchises can help remove some of the initial uncertainty required to start a business. Many franchise brands are designed with flexible management options, making it easier to integrate business ownership into an existing lifestyle. This makes franchising an accessible and practical way to step into entrepreneurship with confidence and clarity.
#3: Fear of a Lack of Experience
In the corporate world, the opportunity for advancement depends on your experience and education. Many may worry that extensive industry knowledge or prior experience is similarly required for starting your own business. Fortunately, this is not the case.
Often No Experience in Franchising Is Required
Most franchises don’t require prior business ownership experience or experience in a specific trades industry. Nor do you have to read dozens of books on starting a business. Neighborly home service business brands provide formal training in all aspects of owning and operating your franchise. As an example, that would mean you don’t need professional painting experience to own a Five Star Painting franchise. After the initial training, support continues with a Franchise Business Coach who will continuously check in with you and answer any questions that come up.
Hear from Mr. Electric franchise owner Evan Dimov as he shares how Neighborly’s strong support system and ongoing training have helped set him and so many other franchise owners up for success:
#4: Fear of Not Getting Return on Investment
Funding a new venture is a challenge. About 50% of independent small businesses fail within 5 years, which can cause fear among those looking to start their own business. A major concern for people thinking about starting a franchise is they will not get back their investment, or that it will take too long.
Franchising Can Be a Good Investment
Investing in a reputable franchise can be far less risky than starting your own business. A five-year study by the franchise consulting firm FranNet reported that 92 percent of their franchise placements were still in business after two years and 85 percent after five years.
Unlike starting a business from the ground up, investing in a franchise means stepping into a proven system with a track record of success, recognizable branding, and a built-in customer base. Franchise owners benefit from an established brand that is tested and proven with valuable national or local advertising. Owners can also receive ongoing training, resources, and operational guidance from the franchisor, which helps reduce risk and streamline growth. With these advantages, franchising can offer a more secure and scalable path to long-term success compared to independent ventures.
How to Overcome the Fear of Starting Your Own Business with Neighborly
There is no doubt that starting a business can be intimidating, but you don’t have to let your fears keep you from following through on your dreams to become your own boss. If you’re the type of person who says, “I want to start my own business, but …,” investing in a franchise provides you with a mentor and partner in overcoming fears of starting a business and setting yourself up for a better chance of success. Although there are risks with any new business venture, franchising can offer more security than those starting a business on their own.
Let us help you overcome the fears of business ownership. Explore the many brands that Neighborly has to offer, from landscaping and property management to window cleaning and home inspections. It’s time to become your own boss and enjoy the benefits of business ownership.
