Start-Up vs Franchise: Which Is Best For You?
Many people dream of owning their own business and throwing off the weight of working for someone else. One thing aspiring entrepreneurs have to decide is whether they want to go it alone or buy a franchise. While both can have their own unique benefits and drawbacks, only one is the right choice for you. Doing research and weighing the pros and cons of each can lead you to determining whether you should strike out on your own or buy into a successful franchise. Let’s look at and explore both options. First, we’ll start simple: what is a franchise and what is a startup?
Simply put, startups are businesses started by people who want to strike out on their own in a unique way. Often confused with independent businesses, startups are actually independent businesses with a goal of doing something different. As an example, an entrepreneur could open an independent restaurant but follow the same blueprint that others have – a theme, a menu, etc. Someone opening a startup often thinks outside the box of the traditional business plan and wants to create something new. Perhaps a chef is interested in opening a restaurant that focuses on meal kits or DIY cooking options – this would be considered a startup.
Startups can be exciting and an especially good fit for those who have a unique idea and want to pursue it. Often another goal of a startup is to disrupt the industry in which it begins. As an example, Amazon and Netflix began as startups which offered services in a new and, some say, better way then their competitors. Another hallmark of startups is their focus on growth. Typically, the entrepreneurs who dive into startups aim to build quickly by enhancing products through an iterative process and reaching more customers.
However, all of this growth and expansion falls squarely on the team or individual that initiated the startup. If a startup starts to falter, there’s no support from an overarching system to provide additional resources or instruction. Startups can be very successful and very risky depending on the entrepreneur, the product or service, and the market conditions.
Franchises are an excellent option for those wanting to start their own business but either don’t have a lot of experience in business owning or simply want to make a smart investment. When you buy a franchise, you automatically get a built-in network of people who’ve been down the same path before you, as well as a system that provides education, marketing, training, and support. Franchises provide franchisees with a strong and proven track for success. In addition, your business will have automatic name recognition and a brand that people are used to supporting. And, just as with an independent business, the franchise allows owners to work on their own terms. Some franchises even have models that allow franchisees to be mostly hands-off when it comes to daily operations.
As with any business endeavor, there are some limitations in franchising. As a franchisee, you are limited by the rules and regulations of the franchise and are expected to uphold the brand. In addition, there may be royalty fees that you must pay on a continuing basis in addition to a one-time franchise fee. However, these fees and regulations allow the franchisor and franchisee to work together in a methodical, proven system to provide goods and services.
What’s Your Path?
Now that we’ve looked at things that determine what a franchise is and what a startup is, the next step is for you to figure out which one is the better option. To be a successful business owner on either side of the coin requires dedication, passion, and smart decision making. To be successful as a startup owner, you have to have undying drive to succeed and provide the market with a unique offering. To be a successful franchise owner, you have to be able to play by the rules and uphold an established brand and level of service. Both can be rewarding and challenging at times, but which path you pick really depends on your goals and personality. Are you driven by personal recognition or are you driven by the desire to simply work for yourself and provide quality products and services? Are you interested in changing the market or are you interested in bringing an existing brand into it?
Only you can make these choices and evaluate whether a startup or a franchise is best for you. If you’re looking into which franchise may be the perfect fit, then you’ve come to the right place! Fantastic Sams provides a near-universe need in the beauty industry: hair care. We cater to all ages, making repeat business almost guaranteed. In addition, our locations feature light inventory, simple real estate, and allow you own but not operate. There’s no experience with hair care required! Contact us today to learn more about our franchise opportunities.