If you’re new to business, you might be wondering whether you should start a business from scratch or buy a franchise business opportunity.
There are pros and cons to each type of business, but evaluating the differences will help you find the right fit.
Let’s take a look at eight factors that you should evaluate before selecting a franchise business or starting something from scratch.
If you opt to start a brand new business, people won’t immediately recognize it. It will take time for you to build a brand and reputation. But when it comes to franchises, many consumers are already familiar with the brand, its products, and its dependability and quality.
Even if your company is new to a region, the franchise brand’s reputation and online reviews will likely help local customers trust your business. As a result, the odds of success will be considerably better.
For a startup business, the owner needs to create procedures and standards for the daily operations of their business. As an owner, they can exercise their management style and have complete control.
In contrast, in a franchise, the strategic control remains in the hands of the franchisor, and franchisees manage only operational issues.
In other words, while you need to create your strategy as a startup owner, less strategy is required from you in a franchise business. This is because the franchisor has already created their strategy for success, and you only need to follow their guidelines.
Another significant difference between a startup business and an established franchise is the responsibility of securing good deals with your vendors. When you establish your own company, you must handle every part of your business.
You are responsible for making sure that the products or services you provide meet high-quality standards, as well as negotiating all of your deals with vendors and suppliers while keeping within budget.
The franchisor, however, has established relationships with vendors and likely has stronger buying power ensuring the best deals.
A new business requires a considerable investment, but finansors are more willing to lend to an established brand than to a new business.
In addition, startups have to spend time and money developing marketing campaigns and building brand awareness, while franchisees can rely heavily on the support of the franchisor and their existing marketing team and budget.
In the early phases of a company, more money will need to be spent on marketing and promotion to build brand awareness. If you’re starting your own business, you may need to hire some help if you’re not an experienced marketer.
A franchisor, however, may already have an in-house marketing department that can produce marketing materials for you based on their market research, strategy, sales projections, and budget, to aid you in marketing your business.
When starting a business, an owner must conduct preliminary research and prepare a detailed estimate for supplies, equipment, and office space requirements. Then they must implement each stage on their own.
A franchise allows you to get up and running more quickly since they have all of these details sorted out, along with vendor partnerships that can get you set up in a timely manner.
Startups can take a long time to build up a client base and brand name. There will also be mistakes that will likely cost money, time, and energy.
The franchisor will have already built a reputation for you to build on, created appropriate marketing campaigns, and can train you on how to run the business effectively.
With a new business, the owner must conduct all of their own research, do their own marketing, and figure everything out on their own. This can be time-consuming and overwhelming.
A franchisor has already addressed everything for you, and should provide you with ongoing training, marketing, and operational support.
If you’re seeking a franchise opportunity that allows you to start your own business while having an impact on your community’s youth, the iCode School franchise could be the ideal fit for you.
The iCode School franchise teaches STEM education to students K-12. Their goal is to prepare kids for the digital landscape of tomorrow and the demand for workers with technical skills to support evolving technologies.
Their leadership team will support you through each step of the process from transparent conversations about finances and the business model, to ongoing training, and marketing and operational support.
Get in touch with an iCode School franchise representative now to see how you can start your affordable, high-performing franchise.