Should You Buy a Franchise or Start a Business from Scratch?

Which Is Better – Starting a Business from Scratch or Getting a Franchise?

If someone wants to know from someone else whether it is better to start a business from scratch or get a franchise, the truth is that no one else but you can make that decision.

However, information can be provided that will help you to see what you need to know in order to make an informed decision.

Every person is different and what will work for one may not work at all for another – or it may not work as well in a different location. Ultimately, this means that you need to become as informed as possible about the process, and investigate as thoroughly as you can before you decide.

For most people starting a franchise will be the easier and safer option, but if it does not quite fit your business model or intentions, then you will have to decide if you can live with the differences if you go with a franchise. Also, if you personally want the joy of saying you did it “your way” and started from scratch, then a franchise would not be for you.

Another serious concern would be if you are looking to create a franchise yourself – once your business becomes successful. If this is your goal, then you still may want to consider a franchise for a few years. The experience that you could get in understanding what does and what does not work in a franchise situation could prove invaluable to you further on.

Control is another major factor when you go with a franchise. You really are limited in what you can or cannot do. Your marketing and advertising campaigns will often be chosen for you.

You may even find that certain products you have to advertise may not even sell well in your community, but you may not have the option to choose how your marketing money is spent.

Profits are another factor and you may not see sizable profits for some time because you will pay a percentage of them to the mother company. If the franchise does not do well the first couple of years then it could be real trouble for you because you will still have to pay the company each month.

Startup costs for a franchise may also be a major problem for many. These costs can be quite large in some cases, and may prevent you from even getting started. Some franchises may help you with finances for startup and with equipment leasing. On the other hand, if you started from scratch you may not need quite as large of an upfront figure.


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