Start your own business or go for a franchise? ~ Pinoy Reviews

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Thursday, July 17, 2008

Start your own business or go for a franchise?

business laptop
One of the dilemmas faced by budding entrepreneurs is whether they would start their own business from scratch or just buy a franchise. Both have their own advantages and disadvantages so it would be better to weigh them according to what fits you best.

Experience. When starting your own business, it would be best that you already have an experience in running your own company. With franchises, you don’t really need that much experience since everything is already packaged with the franchise.

Capital. When you have limited capital, starting your own business is more advantageous compared with buying a franchise. Though it also depends on what type of business you’re going to delve into. Franchise Genius has low cost franchises available that would suit entrepreneurs with low capital.

Viability. There’s really no “sure” business that would guarantee you an exact return of capital. All businesses involves risks and it goes the same for franchises or newly created companies. In both instances, you need to exert your time and effort. You also need to do a lot of research, say, you’re going for a fitness business and you’re choosing between buying fitness franchises or setting up your own gym. Setting up your own gym from scratch with your own company name and logo may be viable if you have no competitor in the area but if there’s already an established fitness center/gym, buying a franchise so that you also carry the name of a prominent fitness franchise is better specially if that fitness franchise is more well known than your competitor’s.

Like I said, there’s really no business that could guarantee you an exact amount of rate of return. Always do your research and if practicable, hire consultants to help you along the way.