If you’re considering it, I’ll discuss two ways you can do it, along with the pros and cons of Startups and Franchises.
If you are entrepreneurially minded, the right step is a pure start-up business. That’s because you can use 100% of your creative juices 24/7.
In short, you are a person who:
- He comes up with a business idea
- Creates a business plan
- Creates relationships with lenders
- It tests and refines your idea
- Creates distribution channels
- So, Creates a marketing plan
- Creates policies and procedures
- Hires employees
- This is a commercial space
- He opens a shop
As you can see, your plate will be full. The hours required to start your business will be long and hard. However, if you believe in your business idea and are willing to see where your idea takes you, those long hours will be good. After all, this is your “baby” we’re talking about here.
Advantages and disadvantages of a startup
If you’re thinking of starting your own business, based on your idea for a needed product or service, there are a few things you need to know before diving into the pool.
Startups and Franchises: Professionals
- You own the idea
- You are a creative director
- So, You keep all the equity
- You can run your business however you want
- There are no rules
- You keep 100% of the profits
- Your total initial investment is unpredictable
- You have no idea when you will break even
- At first, you cannot manage your expenses well
- Your risk is high because you don’t know if your idea will work
- You will be under enormous pressure to make your business profitable
- All in all, when it comes to startups, the risks are high, but your potential financial rewards can make the risk worth it.
Startups and Franchises: Franchises
Franchise businesses are very popular.
When you think about it, the idea that you can open a business in a short period of time using a proven business formula with start-up costs that are fully disclosed is attractive. But as you will see, franchising is not for everyone.
Advantages and disadvantages of franchising
Over the years, franchising has enabled hundreds of thousands of people to start their own businesses. There are many reasons why franchising works. Franchise businesses provide:
- A proven business model
- A trading system that has been tested and proven to work
- Technology to help you as a franchisee stay efficient and organized
- Marketing programs you can use right away
- Support from headquarters
- A network of fellow franchisees that you can quickly contact when you run into problems
- On the other hand, as good as franchising is, it is not perfect.
For example, as a franchisee:
- You will be required to follow the business system and represent the brand as stated in your franchise agreement
- You will pay royalties to you
Source: Definitive Guide.