Are you aiming for retirement? Wanting to replace your job with double your current income?
Are you ready to start your own business but don’t know where to direct this newfound freedom and sense of industry? If you answered YES to any of these questions, then this is the right place for YOU! What comes next is deciding which business model is right for you: franchise or your own business?
It’s essential to understand both models’ benefits and reflect on the risks/considerations before determining the best course of action as a business endeavor. Let’s examine some of the pros and cons of owning a franchise vs your own business.
Let’s discuss some pros and cons of both franchises and your own business…
The Pros of Franchise
Franchising provides entrepreneurs the ability to buy into a proven, successful business model. Franchises operate under a unified system and with franchise owners responsible for day-to-day operations. Purchasing a franchise provides more than a proven track record; it also includes ongoing training, manuals, scripts, and an expert team for mentorship and support.
Impressive success rates
It is difficult to put a price on the level of trial and error that went into developing the system, tools, and reputation that a business must attain before they are able to extend franchising opportunities. So, you are not just getting the franchise itself, you are getting the team of experts who have built a roadmap to success that franchising provides to get to the quickest and easiest means of owning a successful business.
The Cons of a Franchise
All of the benefits of franchising do come with their set of challenges.
Purchasing a franchise can be a considerable initial investment startup costs can run as high as $1 million. While upstart costs can be concerning, the good news is that funding can be easier to acquire, as banks and other lenders are more inclined to approve loans for proven business models. So, an SBA loan is only a click away!
The Pros of a Startup Business
If you have a great idea, you may be able to turn it into a business. Startup costs could average low as $10,000 for starting your own business. But it depends on many variables: whether you plan to work full-time or part-time.
The benefit of self-employment
The initial investment could be significantly cheaper than franchising. A sole proprietorship doesn't only mean you make every decision, set the schedule, and run the company exactly how you want to run it but also, if you know how to build and run a business, this is your chance to take the high risk.
The Cons of a Startup Business
When you start a business, you are on your own. Every expense, every learning experience, and every problem is yours to solve and comes out of your pocket. You must navigate every risk and growing pain.
High failure rate
Startup owners often ask themselves will they actually attain profit and remain profitable?
Your business doesn’t have recognition or an established reputation to lean on. These challenging questions are responsible for the high failure rate of small businesses. 20% of small businesses fail in their first year; about half of small businesses fail after five years in business, and approximately 35% last a decade. These statistics also show why getting a business loan may be difficult or come with less favorable terms, as lenders do not like uncertainty.
Sole proprietors should expect to work long hours with no professional support network or packaged training. If this sounds like it’s too significant a burden to bear, the franchise route may be more wise choice. If you’re still convinced that you can do it on your own, that confidence will be helpful when the bumps come up.
After all this research we can conclude:
You should purchase a franchise vs your own business because the model works.
It offers cautious entrepreneurs a tested roadmap for running a successful business. Franchising continues to grow and sees rising numbers of female franchisees because of the business model’s intrinsic benefits. Deciding which model, franchise vs your own business, is suitable for you is a choice only you can make after weighing personal goals and abilities.
Judith Abraham, MBA/ MS Harvard University
Development Guidance Director
Storage Authority, LLC PS: Check out our Storage Authority Photo Gallery
Schedule a call with me or call me direct
Direct: 405 802 8452 (Call/Text)
Get more information on Storage Authority Franchise at www.storageauthorityfranchise.com/opportunity3
Marc Goodin is President of Storage Authority Franchising. He owns 3 self-storages he designed, built, and manages. He has been helping others in the self-storage industry for over 25 years. He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales, and operations questions. His bestselling self-storage books are available on Amazon.