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.
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.
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.
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. 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 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.






