Franchise vs start up which one works for you trootech

Franchise vs. Start-up: Which One Works for You?

Bored of your 9-5 job? Thinking of starting out on your own? While that is a good idea, starting your own business requires a lot of thought about how to transform a startup into business? On the other hand, there is the lucrative option of funding in a franchise. Yet another lucrative and brilliant option, but then the investment is too high.

While you are shifting from one end to another like a pendulum trying to figure out what you actually want to do, here’s a list of pros and cons being listed out for both. In both cases you are going to start out on your own, the technique and the investment in terms of time and money differs for each case. Let’s get started with franchise and then move on to startups.

Franchise: The Pros and Cons

Franchise means a set business that follows a set of processes and guidelines. It is easy to start a franchise, as you don’t need to regulate its operations in any fashion.

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Despite this, there are advantages and disadvantages of having a franchise.

We have listed them out for your benefit

The Pros With a franchise, you have an established business modeling and planning, which means your chances of succeeding are high. When compared with a standalone business, a franchise definitely stands better chances, because you will work with what already exists, and you don’t have to build anything from the scratch. The visibility and the market share are already there for you to work on.

As compared to a standalone company, the support system is better in a franchise. You will see that the parent company will always extend support to the franchise, specifically for the turnkey operations. There are set equipment, supplies etc. for the franchise and the parent company will be looking into these aspects. The franchise will just need to carry out ground level operations, and worry about conversions.

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The collective buying power works in favor of a franchise. This helps maximize the margins, and make the turnover profitable.

With the national presence established by the parent company, the franchisors simply need to invest in the grand marketing promotions.

They are not expected to work on the creative or even ideate for the marketing campaign. The parent company will work on these aspects, thus freeing the franchisors to concentrate on the core handling of the franchise.

The Cons

The parent company holds complete authority over the franchise, which can become quite an issue if you are a franchisor. You cannot work your way through the things. In some cases, they will micromanage the whole operations, which can irk the entrepreneur spirit in you. In some cases, the lack of financial and training support from the parent company can lead to unforeseen and added costs. There are franchises where the franchisor is supposed to work through all the costs, and this can be quite expensive.

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Have you read the termination clause properly? In many cases, the clause for termination is quite lengthy and complicated. So, if your franchise does not work, you are in for some troubled times.

Pros and Cons of a Startup

The Pros

As an entrepreneur, you might have many creative and innovative ideas for enterprise development. A startup is the ideal way to bring forth these ideas, and paint the canvas with many colors.

If you have been working in a single field for long, then startup is the time to brush your many skills. Startups help unleash the potential within by allowing you to handle many roles and tasks simultaneously.

The pressure of 9-5 job goes away with your startup. You are free to work at your defined hours, and you can always challenge yourself to push forward.

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A brilliant idea and the ability to multitask is all that is needed to get started with your own startup.

The Cons

When you are the one handling all the areas of a startup, it can become quite tiring and strenuous. This is especially true if you are a one-founder startup. The startups don’t have a proven formula or a support system, which means the chances of failure are high, and the investment can be quite risky.

You will need to stay motivated as an individual if you want your startup to work. There is no training and as mentioned no support to rely on. This means you are pretty much on your own in many ways.

What to Choose?

You are aware of the pros and cons associated with both the franchises and the startups. Now, depending on your investment needs, and the kind of TRooTech Business Solutions

independent work you are planning to go ahead with, you should choose either one. Make sure you have nailed the cons to your head before you get started with either.

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