There are many small business ideas available to you when thinking about going out on your own. One popular one is to start a Franchise business.
The Three Advantages of a Franchisee Business
Answering a basic question should solve this debate. Are you cut out for discipline and can efficiently follow instructions or do you have a fierce independent and creative streak in you? The first option corresponds to opening a franchisee and the second to your own business. Here are the various aspects to consider.
The advantage of a brand name is the biggest advantage of owning a franchisee. People walking into a Pizza Hut outlet or BIBA store know exactly what standard of food/apparel to expect. Their confidence in the brand name makes them choose it and if you are a franchisee of a well known brand, you can expect higher initial footfalls.
The second big advantage of a franchisee is easy procurement of supplies and equipment. If you are starting your own venture, be prepared for hours of market research about the types of equipment you will need and where to get them. When you are buying into a franchisee, you already get a readymade basic supply chain. Your franchise supervisors will help you get the equipment you need and also provide invaluable advice and help.
The third big advantage of a franchisee is cashing in on the economies of scale. Your franchisor will be in a position to negotiate bulk deals and he can also pass on some of the savings to you. As a first time sole entrepreneur, you might find arranging for discounts and bulk deals difficult because of your limited purchasing power.
Individual Autonomy and Full Control?
The first and biggest advantage is individual autonomy and full control. If you are an entrepreneur having your own venture, you can use all your creativity and ideas in your business. Every franchiser knows that they don’t really “own” their franchisee as they have to be in constant and rigid adherence to certain sets of rules and follow a specific operating model.
The initial set up costs of your own venture will be generally much lesser than what you will have to invest in order to purchase the franchisee of a well known brand. If you can manage to get funding from venture capitalists or angel investors, flying solo is a good option.
With your own business, you have the freedom to take decisions without having to consult others. It takes times to build reputation in the market. However, once it’s done, cash starts flowing faster. Moreover, you don’t have to share your earnings, so whatever you earn at the end of the day is yours.