Ms. Mona Do: +82-2-6000-8004
3 March, 2020
The decision to start a business is just the beginning of the many things an entrepreneur must do with the desire to own a small business. For most prospective businesses, the process will inevitably include an overview assessment to determine the level of risk they are willing to accept in exchange for a profit.
In the early stages of business exploration, they will need to consider whether they want to start their own business or franchise. Both have their own benefits, largely determined by the personality of the entrepreneur. A man who wants to make every decision about how the business operates will find that the freedom to do that is a great advantage when starting a business. Women with the desire to turn their big ideas into a multi-billion-dollar multinational corporation will also enjoy the freedom that startups offer.
Despite these great benefits, when it comes to risk assessment, starting a business is more risky than franchising.
And this is why.
1. You have to build your own brand
Building a brand identity is hard and time-consuming (usually a few years). Most business owners lack the time and resources to spend years building a brand from scratch. On the other hand, whether emerging or old, franchisees come with established brands, including logos, slogans, signs, uniforms and more. So the first day of a franchise doesn’t mean it’s the first time the market knows about it.
2. Upcoming mistakes will be entirely yours
This is a favorite quote in the franchise business, but it is true throughout the startup. Although you may have an uncle who owns a long-standing business, is willing to give advice and advice, you mostly still have to make your own decision with your own business. If it’s the first time, you won’t know for sure what will work and what won’t. Luckily if the right decisions are made more, mistakes can still be costly.
Franchise businesses are long gone. They made mistakes, learned from them and taught their franchise owners the best way to work.
3. You have no support network
A support system is crucial to business success, because even the best businesses sometimes encounter certain challenges. When things get tough, startup owners have to rely on themselves to figure out how to solve the problems and get the company’s operations back on track.
Franchise businesses are proud of their ability to provide great support to franchisees, from teams, regional managers and close guidance regardless of day or night. It is likely that someone has experienced the same difficulties and is willing to give detailed instructions to help you overcome it.
4. Headaching financial problems
The owner of the startup must do all the work to ensure financial security for his business. They must plan their own business, then present it to family, friends or local banks to receive funding. Above all, most independent business owners rarely know exactly how much money they will need to start a business and how much it will take to survive the tough first.
Franchisees, meanwhile, will be assisted by the owner to develop a business plan, establish relationships with potential partners and know exactly how much they will need to become the owner. franchise ownership.
5. Operating resources
Regardless of the type of business activity you choose, you will need the supplier to operate it. Even the smallest businesses often ask for website, stationery, legal, financial and marketing support. For traditional retail stores, you have to solve problems with goods, industrial supplies, signs and more.
Franchisers may provide those resources directly or suggest potential third-party suppliers to franchisees. Not only that, because of the size, they can often guarantee franchisees enjoy discounts on products and services that startups pay for themselves.
6. You need to create your own formula to succeed
Businesses often fail because their owners are too involved in the business and almost knowledgeable to own and run a business. You can be in the automotive industry, but unless you know how to choose the right location, hire, train and manage employees, handle communications and maintain books, even a car maintenance business can never go beyond an idea on paper.
Franchisers often do not require franchisors to have solid business knowledge because they already have a system in place to follow, and they can also clearly explain the type of skills needed. to succeed as a franchise owner.
Of course none of the above affirms that franchising is risk-free. Whether you’re investing to start a business or a franchise, there’s no guarantee of absolute success. However, entrepreneurs who aspire to start a small business but lack knowledge or experience would be wise to consider franchising to minimize the risk while building the life they want.
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