Buying a Franchise or starting a business? Which is better?

ByFranchise Discovery

Many of us have pondered over owning a business of our own but very few of us have the natural ability to be efficient at running a successful business. Business can be risky and requires a lot of capital, plus there’s no guarantee that profits will happen soon.

 

Business versus Franchise

According to a study, new independent businesses are known to have a failure rate of about 90 percent. This is disheartening considering that business owners give it their all and usually work hard to make their businesses grow. This however, is not the case with franchise owners, whose transition into the industry is smoother because of the guidance they receive from franchisors.

Franchise organizations help launch, operate and grow a business. Franchisors also share their expertise in running the franchise successfully by creating comprehensive operations manuals and training programs so that franchise owners can cover key areas specific to their business model.

So when you become part of a franchise team, you need to ensure you’re completely bought in to its vision, which is not the case with business owners who have their own rules and values when they set up shop.

 

Another pain point for businesses is funding. Getting funding for a business is quite a task as investors and banks will take their own time to weigh the pros. For a franchise, however, banks will disburse a loan quickly if the franchise history is commendable.

 

Franchising offers a better chance to succeed

Most individuals seek three common elements when choosing a franchised business:

  • Revenue

  • Flexibility

  • Status

 

Finding a franchise that aligns with your goals and values is of paramount importance. You’ll be much happier, which in turn will result in higher productivity. Some studies show that franchises have a success rate of approximately 90 percent, making it an extremely viable option. Franchises of McDonald’s, KFC, Chick-Fil-A, Krispy Kreme, Sweet Frog, etc. are highly successful in their undertaking, and remain favorites among people.

0