To Franchise or Not to Franchise: Starting Your Own business vs. Buying a Franchise

You may be, like Hamlet, placed on a threshold of decision on whether to start out from scratch with your own business or buy a franchise. The battle between starting your own business versus buying a franchise truly depends on the person who is to make a decision. If you are on the chasm between being a pioneer business person or a thriving franchisee of an established business, you must be able to consider a lot of factors before you make the final decision. Ultimately, all the factors are affected by your current need and situation.

The first question to ask yourself is this: How much are you willing to risk? In actuality, having your own pioneer business holds a 50/50 chance of succeeding. And if you have enough money to spare and risk losing out at the beginning, you might as well try your hand in doing your one-man show. However, if you are already after profit, franchising after a pre-established business will most probably give you more security in terms of return of investment. More often than not, franchising businesses are already recognized and widespread.

You will really be able to get a fair return for your capital if you link yourself with a fairly successful franchise business. If ever a franchise business fails to give you return for your capital instantly, you will know that the blow is somehow cushioned because you are not alone bearing the burdens of the business. Unlike in a business you will build on your own, you will not experience the full blast of failures should they come. And this will keep you motivated enough to plug away until you become one excellent franchisee. You can still manage to stand out among branches of the franchise business, although not beyond the bounds set by the ultimate business owner.

While you are safer in initial income returns at the franchise business than with a pioneered business, there is nothing that can be compared to the sense of fulfillment you can have in having your own business and not patterning yourself with an idea somebody else thought of.

Furthermore, aside from enabling you to keep your creative juices flowing in a business you pioneered, having your own business will not limit you or confine you to a certain standard which most franchises have. You will get to retain your business individuality and whether it rises up as a household name for consumers or not, you manage to establish yourself at par with the bosses and not a bit below the organizational chart. You will not have to make too many adjustments in a business you own because it is yours. Other people may have to adjust with your policies should you decide to employ people and start setting standards early in the business.

It ultimately boils down to your business priorities. The decision on whether to start your own business or buy a franchise both has its advantages and disadvantages. Your particular situation, strengths and weaknesses, together with outside forces, will help you determine which is truly best for you.

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