You have reached a point in your life that brings you to making a decision about your career. You know what kind of work you want to do, and you know you want your own business. Now you are down to the final decision of choosing to start a business or buy a franchise. What should you consider before making that choice?
- Ownership: Whichever way you choose to start your business, you will still be the owner of the business.
- Time: Neither owning your business independently nor owning a franchise will have a factor on the time you spend running your business. More than likely, much of your time will be spent on the business, especially during the early years.
- Ambition: Make sure you have the ambition to start a business. Starting and running a business is a lot of hard work, and you will face obstacles and challenges.
- Financing: Of course, you will have to provide a certain amount of funding to get either business started. Click here to read our post about how to fund your small business.
- Knowledge: You will need some type of knowledge or experience related to the business you are starting. If you choose to purchase a franchise, your franchisor may provide the training you need.
Now that you have considered the fundamentals that you need to get started, it’s time to narrow your decision-making — possibly by considering the pros and cons of starting your own business versus buying a franchise. Consider the following:
Marketing: If you start an independent business, you will have to begin marketing your product or services by either attempting it yourself or hiring someone to do it for you. If you purchase a franchise, the franchisor will already have an effective, ongoing marketing plan that has been tested and proven.
Methods: Starting your own business independently will take a lot of time, money and effort to find the methods and models that work. A franchise already has proven methods and models in place, as well as an established brand. This in itself proves that there is a demand for this particular product or service.
Area: If starting your business independently, you don’t really have a set area to sell or market to — you will have to try diligently to capitalize on certain areas to become established. This can be difficult and expensive, as there is competition and you may spend a lot of time that results in low sales as you try to get established. A franchise will provide you with a specific territory to work and provides you startup power as you work to gain recognition in that area.
Ownership: One benefit specific to franchises is that people tend to work harder and be more accountable if they are part of a larger company.
Guidelines: If you become part of a franchise, you will have rules to follow without exception. While you won’t have these rules if you start your business independently, many of the rules are based on best practices and are in place to help franchisees succeed.
Royalty Fees: As part of a franchise, you will pay a royalty fee based on your sales. When comparing franchisors, be sure to compare royalty fees. Some franchises charge a straight royalty, while others have multiple royalties — such as a royalty on your sales and an advertising royalty.
Association. As part of a franchise, you are associated with that company, so bad products or services can affect the whole.
If you are ready to make your dream of owning a business come true, National Property Inspections in the United States and Global Property Inspections in Canada have franchise opportunities available in your area. Contact Julie Erickson at 1.800.333.9807, Ext. 24, for information about our property inspection franchise opportunities.