Going into business is a big decision. There are lots of benefits, including being your own boss and making money for yourself and not someone else. Before going into business you need to thoroughly explore your options including what kind of business you wish to run and also what business model you will choose.
Starting Your Own Business
If you have a good business idea you might consider starting a business from scratch. The advantages of starting your own business are that you will have complete control over your business and how you run it. You will get to choose who you hire, if anyone, where you are situated, what products or services you sell, who you use as suppliers and even what your logo will look like. You will have total autonomy. A start up business also allows you to build your business at your own pace over time. The downside of starting your own business is that you will be starting from scratch. You will need to build your customer base and it may take a while to be profitable. You may also find it difficult to obtain finance to start your business.
The Franchise Model
Buying a franchise has plenty of advantages. Rather than starting out as an unknown, your brand is already well recognised in the marketplace and if you chose a good franchise you will buy into a solid reputation. Buying a franchise in a well-known company like Coral Homes for example, means you are buying into an iconic brand. The leg work has already been done as far as reputation goes.
The other huge advantage of buying a franchise is that you get immediate and full access to the proven resources of the company. All the experience and expertise they have gained through the years will be at your fingertips. You will also be provided with systems, processes and procedures that are proven to be effective in managing your business. This saves an enormous amount of time and stress trying to reinvent the wheel.
Generally, when you purchase a franchise you will reap the benefits of the company’s advertising campaigns. They have much more money and expertise to invest into advertising and your business will gain coverage that you could never afford as an independent operator.
Any reputable company will offer you solid training and will most likely provide ongoing training. Having this kind of support can often mean the difference between success and failure in business.
Another real advantage in buying a franchise is that you buy into a company with purchasing power well above the means of independent operators. This means you will have a definite competitive price advantage over competitors, an advantage that can make the difference between winning and losing in today’s tough business environment.
Whether you choose to start your own business or invest in a franchise make sure you seek independent advice first.