Start-up versus Franchise

Image credit: Geralt from Pixabay

Making the decision to quit the corporate world as an underling and pave your own way in business is very daunting. But your drive is there. First, you secure cash flow (rather, don't ask from where because the interest is ridiculous). Second, you already have your five years and ten years all mapped out, even if it's just in your head for now. But the most significant decision is what you should take a highly expensive chance on? You have an idea for a start-up business knocking around. But then, purchasing franchise shares and building on that also looks enticing. 

Brand 
The brand of any business is what makes or breaks it. You can even go from a rock-solid brand one moment to a crumbling heap of ruin in the next. And it can even be from forces outside your immediate control that can cause it. If you follow the start-up route, you will build your brand from scratch and build your brand awareness and trust in the process. But even if you have no clue how to do it, there are thousands of digital marketing companies out there. You can find them with a click of a button who can help and work with you to build it firmly from the get go. Whereas franchises already have a well-established brand. They have already cultivated their brand awareness and trust, and you will just hop on the bus. This is a big turn-off for many as it's not solely based on their business but rather a collective. So again, the risks are that another franchise shareholder can cause brand damage, and it could have a ripple effect on your business.

Location, set-up and the whole enchiladaBeing a start-up owner, the responsibility will be on your shoulders to scout out the perfect building for your business. You need to make the hard decisions on what equipment, technology and even outsource businesses you will use. Your to-do list will increase with each new discussion that needs to be made to get it started. Franchises usually already have the perfect location in mind where the business will work at its optimum. The layout is preordained, and even suppliers are already taken care of. This can be a significant relief for many. Still, it can deter you from sourcing cheaper suppliers or changing the interior of your business to your liking.  

Image credit: Paul Christian Glenn from Pixabay

Overlapping
There are still many aspects that overlap between a start-up business and a franchise. Legal aspects and account for one. Both can be outsourced. If you're a start-up company, there are many software you can use that will turn this daunting task into a breeze. Even if you go the franchise route and you have no clue how accounting works, there are companies that offer accounting for franchises that will make you sigh in relief. 

Whatever one you choose to place all your chips on, you have a heavy hand in making it a success. Self-doubt is a business leach. Consult with business owners of both a start-up and franchise owner and do your research on what they found most challenging and rewarding. In the end, it's all a gamble. But the winnings can be substantial. 

There are still many aspects that overlap between a start-up business and a franchise. Legal aspects and account for one. Both can be outsourced. If you're a start-up company, there are many software options you can use that will turn this daunting task into a breeze - you can even find software that helps you ensure lease accounting compliance, if this is something you know you will be dealing with, yet don't have much experience with. It's always best to turn to the experts when it comes to finances, especially if this is something you are not all that proficient in yourself. Even if you go the franchise route and you have no clue how accounting works, there are companies that offer accounting for franchises that will make you sigh in relief.

Whatever one you choose to place all your chips on, you have a heavy hand in making it a success. Self-doubt is a business leach. Consult with business owners of both a start-up and franchise owner and do your research on what they found most challenging and rewarding. In the end, it's all a gamble. But the winnings can be substantial.