Which Path Should You Take: Open a Franchise or Independent Business?
There are a variety of reasons why people choose to open a franchise over an independent business, and vice versa. Most of the time, the decision comes down to three factors: time, money, and risk level.
Here’s deeper look at the key differences between owning a franchise and starting a business alone.
Pros and Cons of Starting Your Own Business from Scratch
Starting a business is a risky but exciting venture, and there are several benefits and drawbacks.
The pros, or benefits of running your own business alone rather than franchising include:
- Full control of branding
- Full control of service offerings and changes to the business model
- No royalty payments or franchise fee
Now the cons. While starting a business from scratch can be deeply rewarding in the long run, many business owners must navigate sizable obstacles in the beginning. This trial-and-error period for a sole business owner includes:
- Finding effective systems for management
- Researching the market to develop a good business plan
- Deciding on the best technology for running the office and business
- Investing in marketing and branding resources
- Building a customer base and reputation from scratch
Owning Your Own Franchise vs. Your Solo Business
If launching a business on your own without a network or support system sounds daunting, then consider franchise ownership with an established, quality franchisor.
Though benefits can vary from franchise to franchise, these are some common advantages of choosing franchising instead of starting a business all on your own:
- Managed risk
- Franchisor support such as financing plans and training
- Resources for marketing, employee training, recruiting, and more
- Proprietary technologies for administrative tasks, appointment booking, and more
- Built-in brand recognition — and even an existing customer base if it’s an existing franchise location for sale
- Buying power with preferred vendors
- Better work-life balance potential, as business support can free up extra time
Owning Your Own Franchise with Neighborly®
- Established systems
- Advanced technologies
- Widely recognized brand names
- Continuous training and support
- An existing network of support and mentoring