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Key Takeaways:
- Uncover realistic expectations you should have when buying a franchise vs starting a business so you can weigh your options and make an informed decision.
- Learn the secret to establishing immediate customer trust and rapport when acquiring a franchise.
- Find out how to tap into ready-made systems that can save you time and money, while avoiding startup failure.
- Explore the opportunities and pitfalls of both entrepreneurial business models.
Do you dream of owning a business? If you’re torn between buying a franchise or starting a new business, we’re here to help.
In this post, you’ll learn the differences between buying a franchise vs starting a new business.
The Good and Bad of Buying a Franchise
Pro: Saving Time and Energy
Franchises are proven systems that offer support and training for new owners. After completing training and paying for expenses, franchisees hit the ground running with an active support network.
Starting a new business can take weeks, months, or even years of researching industries, competitors, and other entrepreneurial tasks. Making matters worse, there’s no guarantee that your new business idea will be successful.
Pro: Working with an Established Company
Nowadays, people tend to research a new business online before buying its products or services when deciding whether to buy a franchise vs start a business. If you’re like most people, you want to ensure your hard-earned money goes to a company you can trust.
It can take years or more for a brand-new business to earn reviews, authority, and trust. Established companies offering franchise opportunities already have good reputations and customer networks.
Pro: Having a Great Support Network
Buying a franchise gives you a proven business model while gaining a network of incredible support. These networks provide continual support, training, coaching, and answers. You won’t have this amazing network going into business by yourself.
Con: Making a Financial Commitment
It would be nice to push a button and generate wealth. However, we all know that’s not how the world works. As with buying a franchise vs starting a business, they both are going to cost money. The key difference is that franchise costs go toward marketing your new business. Marketing expenses when buying a franchise are a fraction of what you’ll likely spend on a brand-new business.
Con: It Can Require Hard Work
In most cases, franchise owners spend far less time on business launch-related tasks than new business owners. However, as with any venture, success in a franchise system comes from hard work.
Working hard is often easier for franchise owners who buy a franchise vs start a business because they know they’re helping others. 1Heart offers opportunities and help for franchisees to help manage our successful in-home senior care franchise.
The Good and Bad of Starting a New Business
Pro: Having a Chance to Make It Big
It’s understandably easy to read stories about entrepreneurs such as Elon Musk, Bill Gates, and Jeff Bezos, imagining what life would be like as a multi-billionaire. With the right idea, timing, and offer, your brand-new business could become a proven success.
The adage of 90% of new companies failing is a myth. But the real number of successful new companies isn’t that much more encouraging. In reality, about 50% of new small businesses fail within their first five years of operating.
Do you want to put your time, money, and future into something with a 50-50 chance of becoming successful?
Pro: Being Your Own Boss
You can probably remember a time when a boss made your life stressful. If you long to get away from bad bosses, starting a business vs buying a franchise can make this goal achievable.
Being the boss can be great, but not when you have to do everything yourself! Starting a new business takes a lot of work before it’s fully operational.
Con: Doing Everything by Yourself
Most companies become successful when starting a new business because they have a team of employees that grows over time. These businesses require marketers, salespeople, managers, and customer service professionals.
Things aren’t as easy for someone starting a solo business venture vs buying a franchise. Unless you can find and hire the right people instantly, you become the person doing the work of an entire business. Without employees to help launch your business, you might work twice as much as normal when compared to buying a franchise.
Con: Extremely Expensive
Cost is an important factor when comparing starting a business vs buying a franchise. New companies need workspaces, employees, equipment, and much more. Unless you can get a loan or funding, you foot the bill for all of these out-of-pocket expenses.
Do you want to learn more about becoming a senior care franchise owner? Recent research from IBISWorld in 2022 estimates in-home senior care franchises to be a $19 billion industry.
Take Control of Your Entrepreneurial Future
Visit 1heartfranchise.com to take charge of your future, help your local community, and have a helping hand throughout the entire franchise process. You can also reach one of our helpful franchise experts by filling out this form or calling 818-906-4441.