Franchising vs Starting a New Business

Franchise vs Starting a New Business

The biggest decision an entrepreneur has to make for a successful career is to open a franchise or start their own business. Starting their own business is a bold move, but also needs a lot of efforts to start from scratch. However, owning a franchise gives the same amount of respect and recognition while being the easier option. The rewards of opening a franchise outweigh that of starting one’s own business. Franchising a business is not only a smart move, but is also practical. It helps maintain homogeneity and reach out to a wide range of people. It also provides opportunities for trained staff to work and learn with an established brand. Franchising opportunities in India are endless. If you are still confused about opening a franchise, let me assist you with a detailed analysis of the benefits of opening a franchise:

ESTABLISHED BRAND

Franchise owners get the upper hand over independent business owner when it comes to brand recognition. When starting a business from scratch, it will take a lot of time and effort to reach to the peak of maximum brand value. Running a franchise ensures a steady stream of customers both old and new. Also, if you buy a franchise, there is no need to run for the trademarking and other tedious tasks involved in the documentation process.Franchise vs Starting a New Business

HIGHER SUCCESS RATE

A franchise already has an established system that has to be followed by all the franchisees. This not only makes day to day operational tasks simpler, but keeps a sense of homogeneity. This ongoing support brings success to  a franchise, opposed to the uncertainty in opening a business.

OPERATIONAL RESOURCES

Buying a franchise is more popular when it comes to lack in business or industry experience. Franchising is an easier option for beginners as they get an access to a business system, corporate support, a supplier network and other services. However, for independent business owners, they do not get an established support and they have to figure everything out on their own.Franchise vs Starting a New Business

TRAINING AND SUPPORT

A franchise is offered along with support programs like staff training, technology and marketing personnel for a lucrative operation of the business. The franchisors are also responsible for the advertising and branding funds. There is constant support and various opportunities to grow. In an individual business operation, the support is informal and based on contracts.

EXCLUSIVITY

Franchisees are granted an exclusive territory to operate. Location selection is assisted by the franchisor which helps in limiting direct competition between franchisees allowing  a wide clientele to accommodate and generate revenue without any hiccups.

EASIER FUNDING

While buying a franchise, getting funds and loans become easier because of less risk factor. Banks are more comfortable in giving loans for opening a franchise because of the surety of timely returns in opposed to starting a business. There are a lot of risks involved in starting an independent business, which is not helpful when funds are to be sanctioned.