5 Reasons Why a Start-Up is Riskier than a Franchise
For business ownership, there are two firm paths you can follow: found a start-up or become a franchisee. Both options take hard work, dedication, and monetary investment. But each has pros and cons you need to weigh when you’re deciding to start a business.
Here, you’ll learn some of the benefits of franchise ownership and how you can reduce the risk involved with launching a new business.
We understand that every individual is different, and you need to make a sound business decision based on your own situation and goals. So, to help you, we’ve identified 5 things you should consider when comparing between a start-up and a franchise.
- You don’t have to start at square one.
Your time, energy, money, and peace of mind are integral elements to starting your own business. As a franchise owner, you can launch with an established brand that is trusted by many within well-established industries.
This reduces the need for a large marketing or advertising spend. In addition, many franchisors help you find customers and receive the training you need to succeed. This allows you to skip the so-called ‘start-up stage’ while still gaining the independence of being your own boss!
- Launching new products and services can be costly and time consuming.
Launching a new start-up business takes time and money before you start seeing revenue. That’s because you must develop your product and/or service and fine tune your solution to fit the market.
Development and testing can cost thousands, if not hundreds of thousands, before implementation. Investing in a franchise gives you the opportunity to sell a successful product right out of the gate.
- Supplier relationships take years to form.
While creating a product or service can take years, so can forming essential supplier relationships. Franchise owners can take advantage of an effective, streamlined supply chain model that often includes preset discounts and shipping options.
When you’re new to the game, getting those relationships off the ground can take years to nurture.
- No one knows everything.
Franchisors let you know your exact cost and projected timeline prior to purchase. Often, they also offer owners a complete business plan and credible financial projections that make it easier to receive funding.
Whether you’re great at management, marketing, accounting, or customer service, or need some assistance, the overarching franchise brand will help you conquer the learning curve of business ownership with ease while avoiding major pitfalls. This greatly reduces the uncertainty and unexpected surprises involved with a new start-up.
- Choosing community over competition.
Running a business is hard work. When you become a franchisee, you’ll get guidance from an already-established company that can navigate you through new challenges and opportunities.
From opening day to expanding operations, franchisees have the support of a community of other franchise owners, and the franchise brand itself, to turn to for guidance and advice – all without the fear of competition.
If you are interested in the booming commercial cleaning and facility management industry, OpenWorks provides opportunities to both franchise owners and independent businesses.
OpenWorks offers the experience and ongoing support you need for success through low up-front costs, comprehensive business support, and unlimited growth potential. Click here to schedule a call and learn how you can become an OpenWorks franchise owner or subcontractor.
“Not only does [OpenWorks] start your franchise, they also give you the supplies [needed] to start. You don’t have to go and chase down accounts and knock on doors. They offer you the accounts and handle all of the billing.”- Judith Gonzalez, OpenWorks Franchisee Since 2018
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