Starting a new business is, for many, a big change to someone’s life. Running a store or restaurant boosts confidence and often is a significant relief to other financial burdens. First, it’s vital to decide which business model will work best. The differences between franchises and startup businesses are pretty significant and deserve careful consideration.
What Is a Franchise Business?
For many, franchises are a great entry-level way to dig into owning and running a business. It’s required to provide training, supplies, and many essentials to give new owners the best chance at success.
However, all these benefits aren’t free. Franchisees are expected to pay a fee to buy a franchise license. Additionally, most franchises have more costs and expectations along the way. Finally, you’ll have zero control over how things are done in your business—everything has to match the franchise’s rules and vision.
What Is a Startup Business?
The most critical differences between franchises and startup businesses are the ways owners have control. When you create your startup, you are essentially the owner and manager. It’s really up to you how you design your store or restaurant, what goods you sell, and so on. So long as you meet any state expectations and limits, the sky is the limit on what you can create.
It’s not a simple task, though. Every bit of marketing and selling is completely up to you. Designing a menu, choosing your inventory, and even deciding on the packaging all falls on your shoulders. This means that if you aren’t ready to put in significant amounts of time and love into your business, the odds of success are stacked against you.
Choosing the Best for You
The best option for you ultimately comes down to your experience, dedication, and financial situation. With no experience, running a franchise is a great way to dive in and get accurate and beneficial training. It provides an inside look at how one successful company does things. If you’re deeply passionate about business and are dedicated to succeeding, you have an excellent chance with a startup.
Finally, both types are easily quite expensive. With your own business, though, you can better reign in initial costs, control scaling, and even take advantage of crowdfunding to initiate and improve your business.
