Entrepreneurs and Franchise Owners: What’s the Difference?

Around the world, people are increasingly turning to entrepreneurship. In July 2020, the U.S. Census Bureau recorded an all-time high for applications to start a business – an increase of 95% from the previous year. It is a trend happening around the world as people re-evaluate the quality of life they want in the future. They want to use their skills and experience for their own benefit. But how do you do it well?

Defining entrepreneurship

In every definition of entrepreneurship there is a mention of risk. There’s no guarantee that a business venture will succeed, so people choosing to launch their own business are often more comfortable taking on risk than those who choose to work for others. However, there is risk in being an employee as well, and you have no control over decisions that may greatly impact your career potential. Some would say there’s more risk in that scenario.

There are ways to manage the risk of becoming an entrepreneur, and one of those ways is through an entrepreneur’s franchise. You don’t have to be Elon Musk to earn the title of entrepreneur; instead, you can use a combination of existing resources to establish a new enterprise. You can take an established system — an entrepreneur’s franchise — and bring it to life in a market where it doesn’t currently exist to create value for that community.

The entrepreneur’s franchise inspires business ownership

Being an entrepreneur is more about who you are than what path you choose to follow. A 2020 article in Forbes magazine highlighted five ways of thinking that tend to inspire entrepreneurship as it relates to becoming a franchisee. Some of these may resonate with you:

• Ready for ownership but seeking guidance
• Have the capital but not the idea
• Interest in ownership but want a turnkey option
• Looking at investment options but want to work for it
• Wanting ownership with growth opportunity

Many people are entrepreneurial-minded and would make great business owners thanks to a strong belief in their own abilities to do great things. Two factors that can often diminish that drive is the risk they perceive in the financial investment and the time commitment they need to get there. That’s where an entrepreneur’s franchise can be a solution.

Starting from scratch or starting from a solid foundation

Aspiring entrepreneurs always need help to get established, whether in the form of startup resources or people to mentor them through the journey of business ownership. Sourcing that trusted expertise is the aspiring entrepreneur’s responsibility, whether the path forward is with an independent business idea or using a franchise support system.

Creating an independent business is usually more time-consuming and expensive to build from scratch because you have to negotiate so many variables. Can you succinctly define your niche in the marketplace and how you will differentiate from the competition? Are you versed in the practices of hiring and training staff? Are you proficient in administration and smart in financial management? If you are using a consultant to help you get launched, what makes you sure they’re invested in your success?

When you consider becoming a franchisee, you still have the foundation provided by the essentials in smart business planning, but that work has been done for you in the franchise model. The people doing this work are entirely invested in your success because it reflects on their success. They have skin in the game, so to speak. While you pay for that service with your franchise investment and royalties, you benefit for the life of your business from the knowledge and investment they make on your behalf.

Autonomy is encouraged in franchising

Franchises want people who believe in their ability to succeed. Not every person is wired that way, but entrepreneurial-minded people most certainly have that belief in themselves. The entrepreneur’s franchise option creates a more efficient path forward by providing a foundation upon which to build that business ownership lifestyle. There’s still plenty of autonomy in making decisions in the business — franchisors encourage that thinking to elevate their brand — and the structure provided ensures that entrepreneurial spirit is never sidelined by operational responsibilities.

Consider Franchising with ProSource Wholesale

There is no single path to entrepreneurship, and it is an opportunity worth exploring if you believe an aspiring entrepreneur lives within you. A good starting point is completing a franchisee profile — like the one offered at ProSouce Wholesale — to give you a look at the foundation provided by the franchisor.

Investing in success is what ProSource Wholesale does every single day. Our market niche, the residential showroom segment, is estimated to be worth more than $80 billion by 2027. We benefit from catering exclusively to trade professionals, who provide more than half of all home improvement work. We’re looking for passionate entrepreneurs to help us grow — no industry experience required.

Submit this form and start exploring a ProSource Wholesale franchise today.