Before we answer why franchising is better than starting a business we need to understand what are the main differences between them. If you are starting a business your main priorities will be to grow your brand and spread awareness. You could spend weeks and even months before your first order, investing all of your capital in order to grow your business. On the other hand, with a creditable franchisor, you could easily manage only what’s required from you and start earning right away.
Franchising is the better way, especially if you are a beginner because partnering with a proven brand is easier to start. Starting a business from scratch could be challenging if you have no experience and it often results in failure. For instance, take Buko Express, which is the leading food cart franchise in the Philippines. They offer complete assistance with every obstacle on your way which is definitely the better way to start if you are interested in a food cart franchise.
Buying a Franchise Over Starting a Business
When it comes to owning a business the majority of people think that they will have complete freedom, not following any requirements. This is not entirely true, however, owning a business can put you against some difficult situations in which your choices can damage or even bury your brand. On the other hand, the franchisor will be your partner instead of your boss. In most cases, the franchisors are well familiar with the problems you might have and they will actively assist you.
Franchises are usually well familiar with the field of work and they are providing already grown brands for you to improve further. Don’t think of your franchisor as your boss, but as a business partner. Before we go any further, I believe that it is necessary to understand that buying a franchise is the safest approach to be a business owner.
Having a complete business model with all “key points” figured out is not everything you will need. The franchisor will give you the recipe but it is up to you to apply it rightfully. Franchising is not a simple “invest” button to press, after which you will quadruple your money. Owning a franchise is really close to owning a business but it is definitely harder than you might think.
Why Partnering with a Franchisor is Better?
Once you buy a franchise you are automatically a business owner. The good thing is that you are entering a system that is already proven to be a success. You will have responsibilities exactly as if you own a business, except that you don’t need to spend money to spread awareness of your brand. The only thing that you need to worry about will be the franchisor’s requirements to keep the fire going.
Here are some of the benefits when working with a franchisor:
Ongoing collaboration – The franchisor will be always available for discussion about your most important inquiries and provide help for anything you need.
No experience needed – You don’t need to have any previous experience. As an entrepreneur, you need to be willing to learn and improve.
Training – Most of the franchisors are providing training for you and your employees. This is a wonderful opportunity to learn how to manage a business, which will take you one step further in your career.
Cost – It definitely costs less to buy a franchise than starting a business from scratch and reaching the same success rate.
Marketing – All marketing efforts done by the Franchisor affects all of its franchisees. Campaigns and advertisements will attract traffic to both Franchisor and Franchisee.
You won’t have any of these advantages if you devise to start a business. You will have to deal with everything yourself, and business success would be the last thing that it can be guaranteed. Speaking of starting a business you need to remember that hard work on the input does NOT guarantee results on the output. As far as partnering with a franchisor, your hard work will always be appreciated and rewarded.
What’s Important When Partnering With a Franchise?
Most people nowadays choose to invest their money in a franchise simply because almost all of the business strategy and planning is done. However, there are a few disadvantages that you can easily overcome if you pay enough attention to. For instance, entering a formal agreement with a franchisor might not be a good idea, depending on the relationship you have with the company.
Another thing you should know is that there is little room for creativity as everything is already established. You also need to keep the good reputation of your franchisor, because bad performances may cause disputes.
In general, partnering with a franchisor is a cheaper and safer way to start. However, success is still not guaranteed even if you buy an established business model. On the other hand, there are many more disadvantages coming with owning a business over a franchise. For example, there is a higher risk of failure, low compensation, lack of resources, and a lot more stress.
Partnering with a franchise is always better because this way you have backup knowing that you are not alone. Do not think that everything will be ready once you purchase the franchise. You need to put a lot of effort either way and follow your franchisor’s requirements to surpass expectations and grow their brand even further. Following all these recommendations and tips you will be able to successfully buy a franchise and start earning.
Bottom Line:
We can easily conclude that the main differences between operating a business and partnering with a franchisor are flexibility, support, and startup. Whether you choose to buy a franchise or start your own brand, keep in mind that both ways are not easy. The recommendation here is to go with a franchise if you are a new entrepreneur with no previous experience.
We hope this article is interesting and helpful for you. We wish you a successful future whether you prefer buying a franchise or start your own business and build everything from scratch.
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