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The franchise industry turns over billions of dollars a year. Buying into a franchise can offer a new business owner some support and stability, but it can be more expensive to do this rather than launch a business of your own. As a start-up, you will be able to control your own business, and reap some huge rewards for your hard work. Whichever route you go down, there’s a lot of research that needs to be done to find out what opportunity there is and whether it’s a worthwhile investment. The right option will depend on your business style, business acumen and the type of person you are.
Franchise Vs Start-Up
If you decide to buy into a franchise, it’s likely to be a bigger investment than starting up on your own. This is because the franchise will share an initial fee for you get started with them. The advantage is that a franchise has a lower risk of failure, and the franchise might help you secure the funds to get started. You will need to keep paying royalties to keep your franchise, but you will keep getting support too for things like advertisement costs and the reassurance of a known brand.
When you start a business on your own, you need a business plan to get any investment. If you can’t secure a big investment, you can get started using loans or credit cards. Whatever you need to do to get started and keep your business afloat in the early days, you will need to make sure that you also have a long-term plan in place, so your business can continue to grow and doesn’t falter in the early stages.
One of the big advantages of buying into a franchise is the strong support network that comes with it. Some big franchise, such as Auto Repair Franchises, give their new starters a few weeks of training, with time spent in a classroom learning the brand and time spent in existing franchise sites learning more about the business. The other advantage is that you also have operational processes and links with suppliers already in place through the franchise. You will be looked after from the beginning. The downside of buying into a franchise is that you won’t have the freedom to try anything new or build partnerships on your own.
If you decide to start your own business, you will be able to make all your own decisions at every stage of the journey. This will take hard work and a lot of knowledge, but if you have a great idea for a business, you will probably want to shape it yourself and watch it grow. By what support is available to start-up businesses? Good business is good for the economy, so look into government schemes that offer funding, advice, and support. There are lots of websites, forums, and books out there that can offer lots of valuable advice that can guide you through the process of starting your own business.