Is It Safer to Buy a Franchise or Start Your Own Business?
As many first-time business owners find out, there is a high failure rate for independent, non-franchise businesses. Franchising provides a proven system and the support of a much larger organization. If you are first-time business owner the benefits of buying a franchise are even greater.
Benefits of franchise ownership
Some of the advantages of buying a franchise over starting an independent company include instant brand awareness and credibility, administrative and/or technical support, franchisor-provided training, quicker return on investment, strong management, and a network of other franchisees and associations dedicated to supporting franchisees.
As a franchisee you typically have support every step of the way from people who are vested in your success, as well as knowledgeable about your particular business. As part of a franchise system you can count on the efforts of your fellow franchisees to compliment your own marketing programs.
If a franchise in the next community or town sponsors an event, commercial or other promotion you will undoubtedly reap the benefits of those efforts. If you enjoy your particular franchise the opportunity to open additional outlets are improved over an independent business owner looking to open another store.
Starting an independent business
As an independent business owner you have to contend with franchise heavyweights that have a lot more resources for advertising and marketing, as well as ready-made brand recognition. Starting out you may have few time and monetary resources for getting your name out.
If you are starting a new business you may be putting all of your energy into operations. Who will drive the sales campaign? Who will find, qualify and bring in the customers?
While there is more creative autonomy in an independent business your chances are much higher as a franchisee of making it in cut-throat markets like food service, hospitality and retail.
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