A lot of you have ambitions of owning a business. You want to manage a company and be in charge of lots of people. There are plenty of ways to do this, and one of the most popular is to become a franchise owner. In essence, this means that you buy a business that already exists. There will be lots of other franchises out there – which are the same as your business, but in other locations and managed by different owners. It’s seen by many as a great way to start your career as a business owner and make a lot of money.
However, is it the right decision for you?
Franchise Ownership Offers More Security
Buying a franchise will basically let you run a small business, but with the added security of a larger business network. There will be someone above you that oversees all the franchises within the network. As such, you have access to different resources and support that you don’t get when you start your own business. Therefore, it’s a more secure business idea in that you have help around you at all times.
Franchise Ownership Saves Time and Money
The obvious lure of buying a franchise is that most of the hard work is already done for you. A franchise is already an established business with plenty of marketing done for it. Therefore, people are already aware of your existence, and you don’t have to spend ages building a brand image. Likewise, you can go to websites like Franchise Direct and scroll through all the available franchises in your area, picking the one you like the best. Then, you buy it. It’s a much quicker process than trying to start your business from scratch, and far less costly.
Franchise Ownership Lacks Independence
A clear drawback of this business model is that you don’t have full independence. You are still in charge of the daily goings-on in your franchise, and you will have people below you that you have to instruct. But, you are not the top figure in the overall business. There’s still someone else to answer to, which means you don’t have full control over where the business goes at all times. An advantage of business ownership is that you no longer have to work for other people, so this could put you off buying a franchise.
Franchise Ownership Means You Share the Profits
When you make money through your franchise, it gets shared with the franchisor. So, you don’t get to keep all of your profits. Again, with an independent business, you are in charge of where all of your profits go.
Overall, there are pros and cons to this business model. If you’re looking for a quick way to start running a business and making money, then it could be perfect for you. In fact, lots of business owners get their foot in the door by owning a franchise before moving away and starting their own independent company. As such, it’s mainly a question of whether or not you want to be independent right away, or if you feel like you could benefit from the franchise experience before starting your own endeavors.