Anyone considering becoming a business owner must ask themselves whether it’s in their best interest to start a new company or find a franchise for sale. While investing in an established franchise sounds like the perfect option, it does not guarantee success. You may also consider starting your own business as an alternative, but they are even more likely to fail than an established franchise. Thankfully, you can minimize the risk by seeking the advice of an experienced franchise consultant who has the knowledge to discern which franchise opportunity is best for you.
If you’re ready to become a business owner and change your life forever, there are pros and cons to these investment options that you should carefully weigh before investing your hard-earned cash into a new business venture.
Starting a New Business
Many people dream of starting their own business, and for some, a startup is the best option. The primary benefit of a startup is the low initial investment. There have been countless entrepreneurs who were able to begin their business with starting costs as low as $10,000. And if your endeavors are successful, your business can evolve into a franchise. On the other hand, creating your own business allows you the freedom to set your desired schedule and choose exactly how the company operates.
Before pouring your savings into a startup, consider that about 90% of all startups fail. This rate of failure is the same across all industries. For your startup to maintain momentum and beat the odds, you will be required to work grueling hours with no guidance, training, or support. If you’re starting without experience, the odds aren’t in your favor. So, unless you’re mentally and emotionally prepared for the challenge of running a startup, a tried-and-true franchise is a much better option for you.
Purchasing a Franchise
If building a business from the ground up seems daunting, there’s always the option to seek out a franchise for sale. The primary benefit of purchasing an existing franchise lies in the fact that you can invest in an established company that has proven its ability to be profitable. The most profitable franchise opportunities typically come equipped with employee training programs and technical support. Additionally, the best-known franchises have a very low rate of failure. If you’re comfortable conducting business within established systems while following directions, franchise ownership is the quickest, most effective way to become a business owner.
Although a franchise has the potential to be one of the most lucrative investments of your life, there is always the risk of failure. Because of this, the most well-known franchises often include a high initial cost, ranging from $50,000 to $200,000. Furthermore, operational costs can take a large sum of your take-home pay. Lastly, if a corporate-level scandal occurs, it can harm your return on investment.
Hundred Acre Consulting
Business ownership can be a very tempting concept for new entrepreneurs and veterans alike, and with good reason. Still, if you’re weighing whether to start a new business or find a franchise for sale, it’s wise to first get a professional opinion from someone who can help you make the perfect decision based on your skills and knowledge.
At Hundred Acre Consulting, we have more than 13 years of experience in franchise consulting. Our expertise and connections can guide you in the best direction for your lucrative franchise investment.
Ready to get started? To learn more about our services, contact our team today!
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