Buying A Franchise What You Need To Consider

For many the ultimate American dream is​ attaining financial independence. However, the ‘easiest’ methods of​ making money, (which entails getting a​ job), may not offer the type of​ financial independence people are looking for. in​ fact, most people who have made it​ rich have done so by starting their own businesses or​ buying a​ franchise. if​ you would like to​ be one of​ these types of​ people, you will need to​ decide whether it’s better you start a​ business from scratch or​ run an​ existing franchise. This article will explain the differences between the two.

Firstly, you can expect to​ pay significantly more if​ you buy a​ franchise. For example, you will need at​ least $500,000 to​ get a​ Mcdonald’s. Things may be cheaper if​ you decide to​ buy a​ lesser known franchise, but you will still need to​ pay in​ the hundreds of​ thousands. Compare this to​ the possibility that you may only need tens of​ thousands or​ even less when starting a​ business from scratch. if​ you are really ambitious yet poor, it​ is​ possible to​ start a​ business with absolutely zero dollars. You would have to​ do everything online and do a​ lot of​ marketing work through free advertising venues, but it​ is​ certainly possible.

Speaking of​ advertising much less has to​ be done when you get a​ franchise. This is​ because the name of​ the franchise pretty much markets itself, especially if​ it​ is​ widespread. Yet, this can offer a​ potential disadvantage too, one that is​ not evident with a​ new business. When you have a​ franchise name, you gain all of​ the publicity associated with it. For instance, if​ your franchise in​ general has been accused of​ using child labor in​ other countries, your business could be affected even though your store or​ restaurant never did such things. Compare this to​ a​ new business, which starts off with a​ fresh reputation. You determine your own publicity rather than inheriting it.

Lastly, when you run a​ franchise there is​ not much room for creative expression when it​ comes to​ the products you sell and/or the services you provide. This is​ because you must follow a​ set of​ franchise rules. While this may be annoying, without franchise rules the franchise loses the uniqueness that makes it​ a​ franchise in​ the first place. However, when you own your own business you can pretty much do what you want.

In conclusion, the main factors that need to​ be considered when deciding whether to​ buy a​ franchise over owning a​ new business are: price, advertising concerns and creative expression. All in​ all it​ will generally be harder trying to​ get a​ franchise over starting a​ new business, but the monetary reward will be much greater. However, if​ you are unable to​ start a​ franchise right now, you can always start a​ smaller business and once it​ builds up then move into franchising. By doing things this way you can go about achieving the American Dream through two financially independent venues.

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