Should you buy an indie business or a franchise?
You're keen to get into running your own business. Great! So are you going to invest in a business that you need to set up yourself, or in a franchise with some of the work done for you?
Setting up as an independent business means it's all yours: there are no restrictions set beyond the obvious legal trading requirements and any industry or neighbourhood regulations.
As a business owner you can create or buy a brand, develop your own strategy and marketing plan, source suppliers and choose whether or not to wear a uniform.
You're really and truly the boss.
Independent business owners who find new ways to work or new merchandise to sell don’t need anybody else’s permission to change, but can take action straight away.
Independent business owners do not need to fulfil obligations to take on products or services, nor do they need to pay a set fee or proportion of revenue each month to another party.
There is no command control to monitor performance and crack the whip if it’s below par or compliance is not up to standard.
For entrepreneurial types this can be just what they want: running their own business their way.
What you might need help with
But while some people see disadvantages to a structured set-up that demands compliance, others can see the value in having their own support team behind the scenes.
In a franchise, the system allows you to effectively stand on the shoulders of others and reach higher, more quickly. Sure you'll make mistakes, everyone does, but you have a blueprint to work to.
Before you open the doors of any business, there are many things you will need to know, including:
- how to run your business systems
- how to source product or ingredients
- how to find customers
- how to follow business procedures
- how to market and grow your business
- how to follow health and safety procedures
- how to recruit and train staff members
- how to manage staff rosters
In a franchise, a good franchisor can provide rules and guidance on how to manage these crucial elements. In an independent business, you’re on your own.
- Do you need advice on buying a franchise? Check out these advisors.