Are you tired of working for someone else, getting limited satisfaction and dread waking up on a Monday Morning? Ever wanted to start your own business but are unsure how to go about doing it? Maybe buying into a franchise is the answer you’re looking for! We have outlined some key facts to help you decide the right path for you.
Franchises have Higher Success Rates
Statistics show 25% of new start-up businesses fail within the first year, 50% of the remaining fail within 5 years and approximately 30% remaining fail within 10 years. That’s a pretty high risk to consider when starting a business!
It has been suggested that franchise businesses are 90% more successful compared to 40% for a typical independent small business. Around 92% of all UK franchisees reported profitability in the last 12 months!
Your Own Business = Freedom to be creative
Starting your own business from your passion fuels creativity and innovation, as it is yours. Your business idea and your creative processes make it a success – your way.
If you are a highly entrepreneurial or a creative person and you want to make your dreams and ideas a reality, then go for it and start up your own business!
Having your own business does allow you to have more freedom and control to adjust the business model and systems unlike a franchise, but of course this comes with risks. Having a franchise model which has been tried and tested helps eliminate risk within your business. They’ve already made the mistakes and learned from them, so you don’t have to!
Franchisors will help with your business
You will have access to support and help for the duration of your franchise agreement. Depending on your agreement, you’ll get a detailed manual for how to run all operations within the business, as well as direction on branding, marketing, selling, and everything in between!
Think about it this way – it is in the best interest of the franchisor to keep all franchisees knowledgeable, trained and supported, to elevate all businesses under the brand successful. With a franchise, everyone works together – you’re never alone!
Franchises have Stronger Brand Recognition
The franchisor will have a brand which is already recognised by their customers and starting a franchise allows you to jump right into the market! Joining a franchise network also means there are more businesses promoting the same brand, increasing your brand awareness and opportunity.
Both a Business and Franchise will have Costs
The initial franchise fee and total capital investment has calculated everything you will need to start and hit the ground running. This should account for everything you’ll need to achieve the daily operations and running of the business from Day One.
There is some ambiguity to the cost of starting your own business as it is difficult to calculate for everything needed to run the business day to day without having experienced it. The upside to this is that you can start some types of businesses with a very low initial investment!
Something else for you to consider with franchises is that the franchisor will take a management and marketing fee from your turnover which will contribute to the support of the business model and brand. While you don’t have this management fee in your own business, you also won’t have the support of an established brand and the advice from experienced associates. Is the management fee value for money? Only you can weigh it up for your business.
Level of Support
New start-ups are pretty much on their own, with only bank lenders, family and friends to turn to for support. While you could hire business consultants and specialised experts, they can be expensive.
Within a franchise proposition this support and guidance is part and parcel of being in a franchise network. There are also other opportunities for franchisees to learn from each other, in the form of networking forums, and speaking to existing franchisees. By sharing knowledge and best practice to help mentor each other, you’ll all be helping your businesses to grow together.
There is no right or wrong answer to starting up a business vs buying into a franchise. Make sure you research thoroughly into all avenues and identify which best suits your personality, drive and overall goal of what you want to achieve.
Don’t be afraid to contact the franchises which spark your interest, their insight and franchisee testimonials may be what you need to help you decide on your new venture!