So you’ve decided that you want out of the rat race and are ready to run your own business. There are two avenues you can travel. You can go with an existing business such as a franchise, or you can start a business from the ground up on your own. Listed below are a few pros and cons to each to help you make an informed decision.
Benefits of Owning a Franchise
Becoming an owner of a franchise location that’s already a household name, like a UPS store franchise, has its advantages. For one, you already have people who will come to your business on opening day. This can reduce your need for investing extra money, much of which you often waste, by trying to establish yourself and create a loyal customer base. Owning your own store lets you hire your own staff, order supplies and enjoy a nice salary with a year-end bonus attached. You also don’t have to create a set of rules and regulations for the business, as this is already in place. Plus, if you have little or no business experience, training classes for you and your employees is automatic. And, the colors and work attire is already selected for you. This can take a lot of stress off your shoulders since the business operating system is already developed, and successful.
Benefits of Starting Your Own Business
Making the decision to go into business is not something you should do on impulse. It can take a couple of years to enjoy brand name recognition. And, since you have only one location, getting the word out that you exist will require a lot of money. On the upside, if you advertise and establish a loyal customer base they will refer you to their family and friends. Owning your own business is particularly rewarding because it’s all yours. There are no rules to follow, no set hours on the clock and you make all the decisions. Your income grows as the business grows, with really no cap. The more customers you gain, the higher your earnings.
Your Own Business or a Franchise
Whether you decide to start your own business or buy into a franchise you will need to have access to a lot of money and prepare yourself to put in many hours initially. Borrowing money from a lender is much easier to acquire when the business is already established. However, if you have your own money, you can go slowly with your new venture to work through the trials and tribulations of a newly formed business. If you are the type of person who likes things your way, owning a company versus a franchise is a better fit, as there are non-negotiable procedures that you must follow. If on the other hand, you want to simply make money and not worry about creating guidelines, a franchise is a better option.
Whether you decide to buy into a pre-existing and successful business or launch a new company, being a business owner has many advantages versus just an employee. The more successful either one is, the more you stand to put into your pockets. Ultimately, it comes down to where you want to start from, ideas or achieved results.