Do you have a business in mind? You don't know if it is better to invest in a franchise or in your own business?
Here I give you some tips that will help you make a better decision.
It is difficult to find the correct answer. Well, a well-chosen franchise can ensure a rapid improvement in your financial situation, but an independent business will allow you to decide how to approach it and take your own innovative risks.
So that we can understand the difference, it is good that we understand that the franchise is a marketing and expansion strategy, which started as a small business. that I have overcome obstacles, and consolidated a good operational and administrative structure that will prove to be solid and proven, in order to minimize the possibility of risk or failure on the part of the franchisee.
Now, franchise and independent business go hand in hand, because it had to start with one, to reach the other. They are a joint effort to ensure that the independent business develops in such a way that the franchise minimizes its chances of future risks.
Before making a decision, it is best to know what the advantages and disadvantages of each one are, in order to choose the path you will follow in your future as an entrepreneur.
1.- There are fewer risks at the time of investment, since you work on an already recognized product.
2.- It already has a procedure on the administration of the business and the way of managing this new company is simplified.
3.- Operating costs are lower since you enter a business located in a larger economy.
1.- Little control on the part of the franchisee over the domain of the franchise, since it is predetermined.
2.- It is necessary to incorporate more sophisticated structures to meet the needs of the franchise.
3.- Training expenses for all the personnel that will be in charge.
1.- It is more innovative, it is more apt to respond quickly to the changing demands of customers.
2.- Provides autonomy and job satisfaction to those entrepreneurs with little financial capacity to start their own business. (when it really has acceptance)
3.- It has the ability to make alliances and partnerships, unlike large companies that are managed by demarcated competitive interests.
1.- Starting a business of this type usually makes radical changes in the economic level of the new entrepreneur, since they must make use of their savings and incur various loans.
2.- They usually close their businesses very soon due, mainly, to the lack of economic resources, technical capacity or lack of clients due to little or bad publicity.
3.- These types of companies usually have less access to financing, or greater difficulty in obtaining it.