Throughout my entrepreneurial journey, I’ve initiated several ventures, both from scratch and via franchises, in varied sectors like financial services and health and wellness. A common thread that connects many of the clients I work with is their aspiration to transition from corporate life to business ownership.
The critical question I’m often asked is: “Should I buy into a franchise or start a business from scratch?” The answer is complex and entirely dependent on your circumstances, objectives, and entrepreneurial spirit.
Innovation vs Freedom
If you’re armed with a completely innovative, groundbreaking idea, launching a business from scratch may be your preferred route. Such an endeavor allows you to develop your concept, push boundaries, and possibly disrupt an entire industry.
However, many of my clients are seeking more freedom than their corporate jobs offer, longing for an opportunity to be their own bosses, potentially work with their spouses, and create something uniquely theirs. If this resonates with you, franchising might be worth considering.
The Franchise Concept
Franchising provides an existing framework for success if you choose the right one. Selecting a franchise entails various considerations: is the concept emerging, and does it resonate with you? Does the franchisor offer a detailed playbook to guide you?
The beauty of franchising lies in its comprehensive model. It provides the product, the brand, the marketing, and often, the sales process, leaving you to focus on personnel and other management aspects. The phrase used in the industry, “in business for yourself, but not by yourself,” aptly encapsulates the essence of franchising. You’re given a playbook to follow, and you infuse your personality into the established brand.
Franchise vs Starting From Scratch: A Cost Perspective
Cost is a significant concern when launching a business. Whether starting from scratch or franchising, the expenditure will largely depend on your specific venture.
If you’re initiating a business identical to a franchise, you need to factor in the investments necessary if you were starting independently. Costs can include logo creation, website development, business process planning, interior design, and many others. These upfront investments are integral before you even commence business operations.
In franchising, many of these costs are already absorbed into the franchise fee. This fee buys you the playbook, the process flow, the marketing, the branding, and even support in site selection and architectural design. When considering all these elements, franchising can often be a more economical way to start a business.
Franchise vs Independence
Starting a business from scratch is undoubtedly a thrilling adventure. You control every element of your business, and the freedom to adjust and adapt as you please can be incredibly rewarding. However, this freedom often comes at an upfront cost.
In contrast, when you buy a franchise, you must play by their rules, designed to ensure consistency across locations. Despite the restrictions, the structure and support can make the path to entrepreneurship smoother.
Whether to franchise or start from scratch is a decision as unique as your entrepreneurial journey. Both paths offer exciting opportunities, potential challenges, and rewarding outcomes. The choice boils down to your vision, resources, risk appetite, and the type of adventure you wish to embark on.
I’d love to talk it through with you. Schedule some time with me today to begin your journey.
