Entrepreneurs – Do It Yourself Or Buy A Franchise?
You’ve wanted to go into business for a long time. You know what you want to sell and you know who to. The last big decision you have to make is – do I go it alone or do I buy a franchise?
Well there are pros and cons on both sides. Starting your own business means that you have to learn everything as you go along. It can be cheaper and you have more freedom to follow your own choices and decisions. One big drawback is that you will have more problems getting business recognition and establishing your brand. In many different types of business, your unknown and untested brand will be battling for business against several other “household names”. This is tough and can be expensive. The trick here is to find a niche that the cookie cutter franchises are not addressing. So whilst there my be numerous coffee bars for example – yours would be the one that sold home made chocolates or cookies to go with the drinks.
Starting a franchise gives you more instant company recognition and help in setting up your business – from plans to opening days. It also gives you less freedom to do what you want, when you want it. Your franchise agreement will have several constraints built into it. You will also be involved in finding both fixed and variable ongoing costs, payable to the franchisee.
My suggestion is to research the strengths, costs and feedback on the various franchises within your chosen business area. Find one you like, can afford and that actually supports its franchisers.
Then research what it will involve and cost to set up your own franchise using this franchiser. Do the same for your non franchise business. Remember to factor in such matters as designing your own packaging, signs and more importantly products. Expect to have a minimal cash flow while you establish your brand and customer base.
Sit down with pen and paper and compare all the respective costs, of start up and running the business for three years. The list the pros and cons of each type of business and see what kind of conclusion you can get to. If nothing else you have undertaken some detailed planning for your new business.
Last thought. In a highly competitive business area – sometimes product and business recognition is very important. Could you compete in your own business if a franchised opened up close by?
© Copyright 2009 Biz Guru Ltd
Lee Lister writes as The Biz Guru, for a number of web sites where she provides advice and assistance for the business entrepreneur. She is a published author – her books <i>Entrepreneur’s Apprentice </i>and <i>How Much Does It Cost To Start A Business?</i> as well as detailed information on how to start many low cost businesses, can be found on www.StartMyNewBusiness.com
With over 20 year’s management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses. If you would like more help and assistance in setting up your new marketing strategy as well as some great marketing services then visit: www.MarketingGuerrillas.com
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