There are many reasons why you might consider becoming a business owner.
Whilst setting up your own business from scratch may have its appeal, investing in a franchise often proves to be the most secure, cost-effective, and profitable option, and it offers many long-term advantages that an independent business venture simply can not. Here, we break down the benefits of joining a franchise vs. starting your own business:
Product Demand
One of the major advantages of investing in a reputable franchise is that you’ll be marketing, consulting on, and selling an in-demand product from an established national brand. There’s no need to spend time and money developing, trialling, and improving your products and services – your new business is ready to start working for you from the word go.
Starting a business from scratch can be a lengthy process, taking you anywhere from 3 months to a year to get going, and when you do, you’ll still have to build your market share – and your brand credibility – from the ground up. Many potential customers may also be put off because they either don’t know enough about your products or because they’re unsure about working with a newly established business.
Operating System
For a franchise to flourish, it has to have a proven business model. This means that when you partner with a marketable national brand, you’re investing in a well-oiled machine that has been tried and tested many times over in order to deliver the best possible outcome for both franchisees and the franchisor. There’s no trial and error involved on your part.
When you set up your own business, you forego the security and stability that comes from using an established operating system. Instead, you’ll have to invent the wheel several times over, and when things go wrong, it’ll be up to you to pick up the pieces, cover the costs, and find the time to spend on getting things right in order for your business to survive.
Cost
Partnering with a franchise typically requires a much lower financial investment than starting your own business. You’ll pay an initial franchise fee and ongoing royalties, but your franchisor should cover the cost of business expenses such as training, customer support, essential resources, and much more.
Whilst the price tag for setting up your own company is dependent on a variety of factors, the first few years of a new venture can prove to be particularly expensive as you invest time, money, and effort into sourcing and storing stock, premises, and staff; building a customer base; and establishing your brand.
Training and Support
By joining forces with an established franchise, you’ll have access to extensive training and ongoing support. You’ll also have a strong support network behind you every step of the way, with your franchisor offering dedicated support personnel for marketing, finance, HR, etc., and your fellow franchisees on hand to supply peer support whenever necessary.
Starting your own company can be a steep learning curve. You won’t necessarily have anyone to reach out to when you have questions, so will have to go it alone on a trial and error basis. On top of this, you’ll be required to become a master of multi-tasking and take on the roles of business developer, marketer, salesperson, account administrator and more.
Success rate
Franchising involves building a successful business by putting in place a system that works and establishing a recognisable brand around it. A franchise is, therefore, a proven model. Ultimately, if you follow the system and put in the effort, you won’t go wrong. In fact, a record 97% of franchisees in the UK reported profitable growth in 2016.
The risk is obviously much higher for start-ups, with business failure a real possibility. Just 4 in 10 small businesses in the UK will still be trading after 5 years.
As you can see, there are many benefits to partnering with an established national brand that simply can’t be gained from setting up your own business. If you’d like to find out more about franchising and think that website design and digital marketing franchises such as Spoton.net could be the opportunity you’re looking for, please get in touch by submitting an enquiry form below!
