Should you invest your money into a Start-Up Company or in a Franchise?
Many people will tell you that you can make more money by creating and perfecting your own Start-Up Company, however before you make your final decision, first take these 2 points into consideration:
Reason #1- Franchises have a proven system and Business model already in place.
In other words, it’s a turn key business.
The structure that is needed in order to be successful may take a start up company a few years before it is figured out. Throughout this trial and error process, the person who invested in a franchise could potentially be ready to open their 2nd or 3rd location.
The cool part about franchising is that all of the decision making has already been done, so it’s pretty much a no-brainer.
With a franchise you don’t have to think about what your logo should look like. You don’t have to choose a color scheme. You don’t have to pick out business furniture and equipment. You don’t have to think about the type of merchandise or services you will offer. You don’t have to find vendors and other business contacts. You don’t have to worry about picking the right software system. You don’t have to think about profit margins. You don’t have to think about marketing strategies, and the list goes on.
When you compare it to a start up company, you really don’t have to do much thinking at all. As long as you choose the right franchise, your main task will be to implement what has already been put into place for you.
Reason #2- The brand has already been established.
This in my opinion is one of the most valuable benefits of owning a franchise. We all know leads and potential clients are hard to come by when you first open your doors of the new business. Therefore, if you have a brand that is recognizable to the public, people will come through your doors without as much effort on your part.
This doesn’t mean you are guarantee to succeed. It just means your job will be a little easier.
For example, if I open a new Chipotle, I don’t have to convince a potential customer that the tacos taste good. Chances are, they’ve already tried them at another location. Which in return, is why they chose to visit your store.
Even though there’s normally a hefty fee that you will have to pay in order to be apart of the franchise, at the end of the day it may be well worth it.
The way I see it, it’s either you pay now or pay later.
In other words, the large franchise fee may be considered chump change compared to what you may end up paying in order to get a start up company fully functioning and profitable.
Making a name for yourself when you are a brand new business is no easy task.
Just think, different franchise locations go out of business all the time. And that’s with having a proven system in place as well as a recognizable name brand. With that in mind, just imagine the amount of effort that will be needed for a Start-Up.
Can it be done? Has it been done? Of course!
The question is, are you ready, willing and able to put in the work that is required?
The choice is yours. Which would you prefer, a Start-Up Company or a Franchise?
Put your answer in the comment section.
Note: This post wasn’t created to deter you from starting your own original company, it’s mainly to highlight some of the advantages of owning a franchise.