More and more people today are becoming interested in the freedom of being their own boss. There are a few avenues to explore within this framework including starting a new business from scratch or buying into an established franchise business. Both require a complete shift in lifestyle and career track.
According to the Bureau of Labor Statistics, about 20% of independent businesses closed after two years, while 92% of franchisees were still thriving at that time. Evaluating the differences between startups and franchises can help in elucidating which could be the best fit for you. Let’s examine a few of the factors that can impact this very important decision.
When you begin a new business enterprise, it can take a fair amount of time and expensive marketing before people will recognize and trust the name. Building a new brand and reputation from the ground up can be a challenge. However, when investing in an already established business through franchising, often consumers are already familiar with the brand, its products, and its quality. Even when opening in an entirely separate location, the power of a franchise’s reputation and online reviews go a long way in creating trust within the local community.
For a startup business, it’s essential to create a body of procedures and standards for structuring day-to-day operations. This means that the owner has total control over the style of management and strategy for the overall functioning of the business. However, with a franchise, all of these decisions have been established for you. The systems are already set up and streamlined for maximum efficiency and ease of management so that your responsibility will lie solely in carrying out the mission behind the business.
Speed to Market
Before a new business is ready to enter the marketplace, you need to do extensive research and budgeting to ensure viability and success. This will require going through several stages of preliminary preparation while creating detailed estimates and proposals. However, since a franchise will already have the majority of the details in place, you will be able to get a new location up and running far more quickly. In addition, financers will likely be more willing to lend to an established brand than to a new business for a speedier funding process.
If you’re seeking a franchise opportunity that allows you to start your own business while having an impact on young families in your community, a CEFA Early Learning Franchise could be the ideal fit for you. Get in touch today to talk with our team about franchising.