Franchise vs. Starting Your Own Business: How to Decide

As an aspiring business owner, you’re ready to take the leap to become your own boss. This is a brave new venture you’re starting on, and it’s important that you consider carefully how you want to go about it. Starting a business that belongs to you and only you may be the best choice if you like to be in complete control of your work, but flying solo has considerable risk to it. In an effort to mitigate such risks, you may want to consider franchising instead. While franchising has its own challenges to overcome, it offers several benefits you wouldn’t find when starting a business alone.

Startup Pros & Cons

When comparing a franchise vs a startup, some businesspeople may default to going solo. Opening a startup business independently has the benefit of giving you complete autonomy. You set your schedule, set your budget, create your business plan, decide who to hire, where to locate your business, and so on. All the profits from the business are yours, minus any business expenses. If you have a unique business idea that doesn’t fit into any company’s pre-existing plan, then opening a startup might be your best option.

However, the thing about having all the control means you also have all the responsibility. It’s your job to come up with a solid business idea and business plan, find an optimal location (online and/or offline), secure funding for your business, hire your staff, come up with a marketing strategy, and build your support network, such as an attorney, insurance agent, and accountant. All this can be a lot of work for one person to handle. What’s more, if you don’t have prior experience with business management, you’re going to have to have a lot to learn.

Franchise Pros & Cons

On the other side of the franchise vs. starting your own business choice, franchising strikes a balance between starting a business independently while still having guidance. Becoming a franchisee allows you to open your own business with the advice of a company with a proven concept and business model. You’ll receive training – a valuable and important benefit for those who are just starting out in business ownership – as well as the company’s built-in support system. Good franchisors are invested in the long-term success of their franchisees and will provide you with help in the form of certain services, such as marketing and advertising, a recognized brand to help build your customer base, and purchasing power to make getting needed supplies for your business easier. As a franchisee, you’ll be able to turn to your franchisor, as well as fellow franchisees in the same company, for advice and suggestions.

No business model is perfect, however, and franchising does have some of its own challenges. Some franchises are more expensive than others, especially ones with widely recognized brand names. You’ll also need to operate within the company’s requirements and to meet the company’s standards. It’s important to do your homework when considering a franchise and to pick one that’s got a good reputation with a business plan you can work with. Signing on with a franchise is a long-term investment, and not one to be taken lightly.

Making Your Choice

The question of starting a franchise vs. starting your own business is one that only you can answer, because both methods are valid and viable, and one may be more suitable to you than the other. If you’re experienced, have a unique idea for a business, and/or want to do things your way, then starting a business on your own may be best. If you’re just starting out as an entrepreneur, want a source of advice while getting your bearings, and are looking for a business model with the best chance for success, then you may feel more comfortable owning a franchise. The right choice for you is the one that feels right. Just remember that whatever choice you make, a passion for your business, a drive to succeed, and a willingness to learn will carry you far.

Franchise with Prosource Wholesale

If you’re interested in opening your own franchise vs. starting your own business, we at Prosource Wholesale would love to hear from you. We’re a wholesale contractor supply franchise looking for businesspeople like you to become a franchise owner. We have over 30 years of proven experience selling flooring, kitchen, and bathroom supplies to professional contractors, using our unique membership business model that lets franchisees set a schedule to suit you and your clients. You won’t have to worry about performing complicated renovations or remodeling because that’s your clients’ responsibility. Contact us today and learn more about  franchising with us.