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Franchise or own business creation? Many entrepreneurs ask themselves the question when they are looking for a good investment option. In the rest of this article, we will see what is the most profitable solution based on the situation and profile of the investor.
Who has never dreamed of leaving the employee to finally work on his own? To get lost in your field of predilection – catering, wine, pastry, DIY, interior decoration, luxury, or personal services? To take the plunge, the budding entrepreneur has the choice of the company registration uk, where he is the only master on board – facing success, but also failure – or the franchise company. In both cases, personality traits such as attachment to the product or entrepreneurship are essential prerequisites.
Own business: assets and limits of independence
When you create your own business concept, you have complete freedom to make all decisions. This includes topics such as brand, the type of products you sell, promotional offers, etc. But that’s not all:
- you save some costs that the franchise may have such as admission and royalties or royalties;
- you can choose at any time to transform your business into a multi-brand, or expand it;
- you can choose the suppliers.
You have complete freedom to make all decisions. This includes topics such as brand, type of products you sell, promotional offers, etc.
Regarding the disadvantages, you must understand that you will have to buy everything from A to Z for your business to work. For example, if you open a restaurant, you will have to buy your own catering equipment. In addition, you will have to deal with various problems, such as:
- the lack of support from people with experience;
- register new company name will take you more time and dedication because you have to take care of everything;
- the volume of purchases from suppliers is low, so your costs are higher. Although there are exceptions depending on the sector and type of franchise;
- at first, no one knows your brand;
- there are additional costs such as store design, image, brand, and advertising costs.
Franchise: the price of support
You have the support of the head of the franchise network and other franchisees who can help you in case of difficulty. In addition, the case has already proven itself and you know that it will work from the beginning. The chances of success of your business are much greater, because it is a proven company. The key is to choose the franchise well for its seriousness, support, and model.
As for costs, you can buy at a lower price because the purchase volume of the franchise network is much higher. And you save a design, image, and brand costs.
The chances of success of your business are much greater, because it is a proven company. But with a franchise company, you are not free to make certain decisions, especially regarding the image and design of the store.
Sometimes you may be forced to comply with the promotional campaigns set by the franchise center that your company may not need. The best example is certainly that of fast food that launches low-cost offers on certain days of the week.
Finally, it is obviously necessary to pay duties to the franchise. In conclusion, to choose between business creation and franchise, you must weigh the pros and cons of each solution and opt for the one that best suits your budget, your desires and your project!