Many of us wish to leave our 9-5 jobs so that we can start our own business. Having the opportunity to earn an unlimited amount of money is what makes a business venture an attractive option for most people. One gets to express themselves more and pursue a passion they’ve always had. One also gets turn their ideas into something that earns cash, meeting that unfulfilled need that a 9-5 job can’t realize.
Let’s say that you wish to open a business that offers commercial cleaning services. Should you go for a franchise or found a startup? These days, one has two options to choose from to realize a business venture. Would it be better to open a commercial cleaning franchise, or will it be best to start your business from scratch? To help you decide, we’ve gathered some of the perks and drawbacks of franchising:
When you purchase a franchise, you do not need to work twice as much to introduce your brand to the public. Businesses who offer franchises has already established a name in the industry. They’ve done the brand recognition part on your behalf. The moment you open a franchise, consumers are already familiar with the brand and know what goods you offer. This saves you an extreme amount of time and effort to build brand awareness.
Restrictive type of business
One disadvantage of franchises is that you have no freedom to whatever you want with your business. This means that from the moment you buy a franchise, you’re expected to follow everything in the franchise system. You only market their products and get supplies from the franchisor’s suppliers. The way you operate and even the way your store’s decoration needs to be in uniform with your franchisor.
High success rate
With franchising, one gets to copy and run their business under the guidance of the franchisor. Unlike startups, you have someone to guide you from the way you operate, do your accounting, and even the daily aspect of your business. It is for this reason that you get a higher and faster rate of achieving success.
Ongoing profit sharing
Aside from the initial franchise fee, you also need to pay an ongoing cost to your franchisor every month or every quarter. Also called the royalty fee, this is what you pay your franchisor to be a member of the franchise system continuously. This is what the business at which you bought the franchise pay for expenses such as administrative costs, marketing plans, and business strategies.
No business experience required
Another reason franchising is an irresistible business model for first-time entrepreneurs is that you can be successful even without business experience. You get to take advantage of the franchisor’s established business, well-marketed products, and an existing customer base. You have a current business model to follow, get the proper training, and kick-start your way to financial independence.
Without a doubt, starting a business, whether you choose to franchise or not, can help you achieve financial independence. When choosing between the two, understand the pros and cons first before making the final choice. If you wish to have more autonomy, let your creativity shine, and be the one who is in control, then a startup is a better choice. But if you’re willing to share your success with an established business and take advantage of what they have to offer, then consider franchising.