Advantages of Buying a Franchise Street Signs

Advantages of Buying a Franchise

Pros of Buying a Franchise:

  • When you buy a franchise, you were starting with a tried and trusted business model that has already demonstrated profitability – you know it works.
  • The franchisor will be able to offer some guidance and coaching to help you get established – this will make your learning curve less steep.
  • Some branding material will already be in place including things like: a website (or website template), a tagline, a logo, business cards and other promotional materials.
  • The initial expenses should be more predictable because you won’t be spending an undetermined amount of money for collateral elements (e.g., website,  business card, letterhead, and marketing materials design, etc.). These items will have already be established, it’s a simpler matter of ordering these items.
  • It’s easier to get a small business loan or other types of funding when you have a “ready made” business plan and franchise financials that demonstrate a solid track record.
  • On the assumption that you’ll make good use of previous franchise experience, it should be a much quicker road to profitability.

Pros of Building a Business From Scratch:

Building Business From Scratch

Building a Business From Scratch

  • You may be the first person to offer a particular product or service, this may give you a competitive advantage in the market.
  • Rather than following the guidelines set by the franchisor, you’ll have the maximum flexibility and autonomy to do what you think is best.
  • When you’re in a very specific and/or unique niche, there may not be a franchise available. In this case, the only way forward is to build it yourself.
  • When it comes to branding and marketing, you’ll have the ability to decide what your brand will stand for and how it will be represented.
  • With no fixed or mandatory franchise fees upfront, you can work within your own budget rather than the franchisor’s budget. This may even mean that you choose to bootstrap your business with limited resources while continuing to work elsewhere (i.e., start your business on a part-time basis … to be fair, there are also some franchises that can be started on a part-time basis).
  • With a unique idea in the right domain and usually plenty of digging, sometimes startup grants or services are available from various levels of government.

Owning a franchise or starting a business is not a choice that suits everybody. If you’re curious about how your skills and preferences align with self-employment, that’s something that I can help with. In addition, I work with Lisa McMahon, a franchise broker with Opus Franchise Connections. She has access to approximately 400 franchises from small home-based businesses to brick and mortar enterprises. She is a valuable source of information if you are curious about some of the Franchise options that are available.

About the writer 

 Dr. Helen Ofosu was born and raised in the Toronto area, but her roots are in Jamaica and Ghana. She offers Career Coaching and HR Consulting using her background in Industrial / Organizational Psychology (aka Business Psychology) as the foundation for her practice. She founded I/O Advisory Services in 2012 and is accessible by phone, email, Facebook, and LinkedInShe can be reached at: 613-424-8689 or  Toll Free: 1.888.878.8861; e-mail: [email protected]. Web: www.ioadvisory.com.