You’ve dreamed of being an entrepreneur and you’re ready to make it a reality! When it comes to owning a business, there are two main paths: Starting a business from scratch and buying a franchise. Both options can benefit from your expertise and skills. Both allow you to be your own boss. But they each pose challenges and benefits. We take a fresh look at some of the pros and cons and present viewpoints you may not be thinking about. Then, you’ll be closer to deciding what’s best for you – a startup or a franchise?
High Risk vs. Calculated Risk
“The biggest risk is not taking any risk,” said Mark Zuckerberg. As an entrepreneur, you need to be willing to take on some risk, otherwise don’t expect any gain. Look at the risk/reward equation and decide if the potential gain is worth it. Starting a business from scratch usually comes with higher risk and many unknowns, especially in certain industries. Opening a franchise is usually a calculated risk when backed by an established support system and proven business model. And the Franchise Disclosure Document and due diligence process help make an informed decision.
Your Stage of Life
When is the best time to start a business? There may not be a “right” answer, but there can be wrong ones. A startup can mean working grueling hours and sleepless nights. If you have young children, aging parents or want a healthy work/life balance, the right franchise can offer the flexibility you need. And you can still become an entrepreneur if you’re starting later in life – you have the experience and knowledge to make an easy transition to franchising.
Creativity or Community?
When deciding between a startup or franchise, consider building your own business if you want full creative license to run with your own ideas and rules. Conversely, if you work well within a structured system and are willing to give up some autonomy, then you have the personality for franchise ownership.
The same can be said for having a community. Starting a business from the ground up usually begins and ends with you. However, with a franchise you’re in business for yourself, but not by yourself. You have a team of other franchise owners and a corporate staff behind you for support and guidance.
Ramp Up Time and Brand Awareness
When investing in a franchise, you’re buying a tested business plan and brand awareness. This allows you a shorter ramp up period to hit the ground running. When starting a business from scratch, time to profitability can take years and a lot of trial-and-error. Building a brand can also be time-consuming and expensive.
What’s the Right Choice for You?
Whether you choose a startup or franchise as your next career venture, you’re headed down an exciting path with many opportunities ahead. The decision depends on the professional and personal experience you want to gain, the factors we present, and many others as do your research.
At BirthdayPak, our franchise is becoming a national brand and ranked by top tier publications. If you’re interested in a franchise opportunity, we invite you to learn more about our available markets and explore our resources for potential franchise owners. Take the first step to entrepreneurship and schedule a call with us!