Franchise Vs Self Business: The Key Differences You Should Know

Want to run your own business but cannot decide whether to buy a franchise or establish a start-up from scratch? Well, if this is the case then this article will surely be of help to you.

Starting your own business is a crucial decision and there are certain factors that should be considered while deciding which entrepreneurial venture is right for you. Through this article, we are going to take you through the key differences in a franchise option and in starting your own business so that you can take a well-informed decision considering your personal growth and business aspirations.

You must be well aware that a Franchise is a business model that offers an opportunity to buy an already established, successful business. The Franchisor gives the license to the third-party owners, giving them the right to operate the business as per the rules and regulations of the company. So, this gives the Franchisee an opportunity to own an already established business with a certain cost but the benefits are multifold.

Now, let us know how Franchise business opportunity is different from starting a business on your own.

Four Distinguishing Features of a Franchise: 

• A Well-Established Brand: The first and the best advantage of taking a Franchise is that you own a brand that is already established. As such you don’t have to bother about developing your brand value from the scratch. An established brand automatically gives good business from the beginning.

• Method of Operation: The method of operation for a Franchise business is a complete package of a business model. It comes with set strategies and framework that are tested, proven and productive. 

• Support: The support and assistance in a Franchise Business opportunity is immense as it is a proven business model. The franchisor provides varying levels of support throughout the life of the franchise agreement. 

• Return of Investment: Though the return of investment may take some time, you will be sure of making profits unlike the uncertainty of returns if you start your own venture. This surety comes due to the timely guidance from the Franchisor who already knows how to get the profits.

So, taking up a Franchise is a great option for those budding entrepreneurs who want to start their own business but require a roadmap and proven strategies.

Four Distinguishing Features of a Business: 

• Method of Operation: In a Business, the owner has the complete right to run a business in a manner that he/she wants to. There are no set rules or regulations. The owner can also introduce new strategies for the smooth running of a business. 

• Investment: The investment depends on the business that one wants to establish. There are various low investment to high investment entrepreneur business ideas that one can explore. 

• Revenue: In a business, all that is earned is the owners share. Unlike franchise business, there is no sharing in a revenue earned in a business. However, the business owner is solely responsible for branding, profit and loss and needs to do everything based on self-discretion which at times may go wrong as guidance from experts may not be there. 

• Support and Assistance: There is absolutely no support in a business as the owner has to do everything on his/her own as specified above. Right from searching for a place, introducing strategies to building a team, attracting the customers and keeping abreast with the latest highs and lows in the market, an the owner is solely responsible for everything. 

So, we see owning a business may seem to be more profitable, but it is equally stressful and many a times the plans and the venture may go hay way.

The Key Takeaway: 

Some people purchase a franchise because the model works for them whereas others establish a business, they are knowledgeable about. In short, it completely depends on an individual what one is looking for. 

There are ample new business ideas for budding entrepreneurs in India. So, one can go with one’s instinct but it is advisable to do a complete research about the investment, profits, support etc… before deciding what’s best for you.