When we think of the entrepreneurial spirit, we think about the passion that burns deep inside of every aspiring business owner. We don’t always think about the practicality that needs to burn there as well, and that’s unfortunate, because without that practicality, many new businesses will fail. It’s a lofty goal to want to work for yourself, but be sure you’re a smart boss who makes sound decisions or you’re apt to face a very expensive and potentially devastating business lesson.
In comparing the idea of creating a startup business with buying into a franchise, there are a few key considerations to take into account.
Preparation is essential in both scenarios, and having a degree or management certificate is ideal in order to set you up for success and recognize industry indicators.
By taking online business classes you’ll learn about competitive analysis and strategic planning, and how to bridge the gap between strategy and execution.
Whether you decide to create a start-up or buy into a franchise, you will need to know how to successfully develop and implement an effective business plan. This, along with business ethics, corporate social responsibility, and various business models can all be learned through an online business course.
The next step in comparing the two business options is to consider the value of the training and materials you get through your franchise fees, against the freedom and flexibility of creating your own unique business model.
A well run franchise should essentially offer a turnkey business. For a buy-in fee you will be guided you through the processes of site selection and lease negotiation, training, mentoring, and given ongoing support with statutory requirements and troubleshooting. Does what they offer equal the fee being paid? In well-established franchises the fee would no doubt be equal, but in newer franchises, make sure you are getting the support and guidance you will need to succeed.
If the turnkey model doesn’t suit your individuality or business concepts, then perhaps you will be one to go it alone, just make sure you come up with a water-tight business model. Also, be sure you are a motivated self-starter and are able to confront the numerous challenges that will await you.
Not Just Location, Location, Location
Finally, you need to consider the current specifics within your industry. Your idea for a new business may be the breakout idea of the decade, but unless you’re sure the timing, industry conditions and geographic location are right, your breakout idea may become a broken idea.
If the conditions are not ideal to support your particular business model, would a franchise allow you to develop your business idea with a few franchise regulations to respect? The opportunity may still be available, but the backing of a franchise organization may provide you with a little more support for your idea within their franchise concept.
Whether you choose to start your own business or buy into an already successful franchise, make sure to bring your passion as well as your practicality, and have the business management skills that will be required in any industry. If you do all three of these things, you’re sure to find great success.