A collection of write-ups from writers/authors willing to write on Entrepreneurship, Business, Corporate Leadership & Management.
The Key Differences Between Buying a Franchise and Starting Your Own Brand
If you want to start your own business, buying a franchise is a decent option to consider. Unlike starting a business from scratch, operating as a franchisee means that you will be able to take advantage of an already well-established brand with a ready customer base who are already familiar with the range of products and services sold.
Operating a franchise business is often an ideal option for those who are new to entrepreneurship and would benefit from the level of support and guidance on offer from franchise companies. However, it isn’t for everybody. It’s worth getting familiar with the key differences between starting a franchise and starting your own business from scratch before you decide which would be the best option for you. So, what are some of the main differences between the two?
A Ready-Made Brand
Operating a franchise means that you can own your own business without the need to think about branding and product ranges, since you’ll be taking over a branch of an already successful business with a strong brand and products, like McDonald’s or Starbucks. You can find a huge range of franchise opportunities at Franchise Local; search the businesses for sale UK, and you can even find some brands that allow you to start a business with £1000 UK. There is certainly no shortage of small investment business opportunities to choose from and the majority are well-established brands who have already gained trust from their customers. Check out these new franchises on the site.
Support and Guidance
Starting your own business from nothing can often mean that you are on your own. Unless you have an experienced investor who’s ready to provide you with guidance and support or are lucky enough to have a strong business mentor to turn to, for the most part, new entrepreneurs have to go through a lot of trial and error to determine what is going to work for them. On the other hand, when you invest in small business for sale as a franchise, you will have all the support that you need available to you. The franchisor will provide you with guidance to follow when it comes to branding, staff training, product promotions, and more, and with set guidelines and rules to follow, it takes a lot of the guesswork out of running a business. As the franchisor has already figured out what works and what doesn’t, you don’t have to take on any of that work.
Marketing is Taken Care Of
Typically, when you decide to invest in a franchise, the responsibility of marketing the brand doesn’t fall on your own shoulders. Most franchisees will pay a fee to the franchisor, which includes the cost of marketing their business nationally and locally. However, with that being said, in many cases, you do not have any control over how your business is marketed; the franchisor will decide based on what’s worked for them in the future. Since franchises typically have more funds to dedicate to marketing compared with a brand-new start-up, getting the word out about your new business shouldn’t usually be a problem.
While there are plenty of advantages to opting for a franchise business, it’s important to look on the flip side as well and consider the downside of this business model. If you are the type of person who prefers to be creative, do your own thing and come up with your own ideas, owning and operating a franchise might not be the ideal choice for you since while you will have some say in what happens, ultimately you’re not in complete control. For example, you couldn’t just change the logo of your business on a whim if you wanted to; you will need to adhere to strict brand guidelines for everything from the products you sell to the uniform that your employees wear to work.
All businesses cost money to start, and a franchise is no different. Typically, you will pay a franchise fee to the franchisor, which will get your business set up. This could involve buying an existing location from another franchisee or buying a location currently operated by the company. Or, you might pay to have a brand-new location set up, which could be ideal if you are going to buy a franchise with a big, widely-recognised company like Costa Coffee and there’s a gap in the market for it in your area. Always do your research into how much the franchise fee will be and exactly what’s included before you decide which company to go for. You may also be required to pay ongoing fees for things like marketing and staff training, so it’s a wise idea to weigh up the costs and research similar franchises to get a clear idea of how much profit you can expect to make.
Starting a business by purchasing a franchise is an ideal option if you want a well-known, successful brand from the start. However, running a franchise can be very different from starting your own company, so bear these differences in mind to ensure it’s the right choice for you. Also, the possibility of a Success, in either case, is low unless we have a proper business plan.
Get the Latest & Recommended articles in your Inbox
Copyrights © 2021 Inspiration Unlimited eMagazine
Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 28th June 2020.
Most Loved On iU
People who loved this also loved