You know that you want to run your own business but can’t decide whether you should buy 🦩a franchise or launch a startup from scratch.

A franchise is a business that an entrepreneur starts by paying for the right to use the brand and supporting resources of an established, typically successful parent business. A startup is a brand new business that's in the early stage of existence and growth. It can take several years for a startup to start making a profit.

An overview of the pros a♓nd cons of each option may he🌠lp you decide which one is right for your situation and personality.

Franchise

The Pros

• At its best, franchising provides an opportunity to 澳洲幸运5官方开奖结果体彩网:buy into an exist🌜ing, successful business model that comes with a proven track record, a successful training program, a solid supply chain, and expert technical support.
• When purchasing a franchise, you get a 澳洲幸运5官方开奖结果体彩网:turnkey business that is ready and waiting for you to take the reins. 
• Some of the best-known franchises have impressive success rates, with the chances of failure hovering in the low single digits.
• If you are detail-oriented, good at following directions, and comfortable with established systems, franchising provides a quick way to become a business owner.
• Depending on the franchise you select, you may have the choice to either purchase a fully operational location or start from the ground up at a new location. The first option enables you to take over a business with an existing customer base, documented cash flows, and a workforce already in place.
• Franchising also provides a clear exit plan. When you are ready to retire, you can sell your well-known business to another would-be franchise owner.

Do you want to build a business or do you prefer to get started with a fully operational business on day one? Either way, fran🌠chising could be an option for you.

The Cons

• 澳洲幸运5官方开奖结果体彩网:Purchasing a franchise can be an expensive proposition, with costs often running as high as $500,000 to $1 million.
• Franchises also come with ongoing expenses that reduce your take-home pay. You'll pay royalty fees to the home office on an ongoing basis. There may be mandates (such as remodeling a hotel or price reductions for a promotion at a restaurant) that eat into profits. And you may have to pay inflated prices for supplies.
• According to Entrepreneur, which studied franchise industry data from a five-year period (2017-2022), closure and termination rates for franchises ranged from 2% to 9.3%, with an average rate of 3.9%. Moreover, the smaller the initial investment, the higher the rate of failure.
• Clearly, not all franchises are created equal, so assess an opportunity carefully before you take the leap. It’s also important to keep in mind that purchasing a franchise is like buying a blueprint for success; like all blueprints, it works best if you follow it.
• Corporate-level scandals, actions, and mishaps can also have negative effects. Consider how the owners of Chick-fil-A franchises had to deal with protests and backlash when the firm’s CEO made comments about same-sex marriage. Reflect on how 澳洲幸运5官方开奖结果体彩网:Subway franchise owners may have felt when the FBI charged long-time Subway pitchman Jared Fogle with distributing and receiving child pornography.

If you dislike or distrust the idea of tying your💝 livelihood toꦗ a particular brand image, you may want to steer clear of franchises.

Yes, the franchise owner runs their individual business but the home office is the boss𓂃. If that sounds too constraining, you might be better off starting your own business.

Startup

The Pros

• If you’ve got an idea, you may be able to turn it into a business. Sam Walton turned his idea into Walmart. Bill Gates created Microsoft. John Schnatter cooked up Papa John's. Countless other entrepreneurs have done the same.
• Depending on your business type, 澳洲幸运5官方开奖结果体彩网:startup costs might begin at less than $50,000 and go up from there to over $1 million. Having a startup can be significantly less expensive than becoming a franchisee.
• If you want a shot at the big leagues more than you want a steady paycheck, launching your own business may be the right move for your personality and vision.
• Most important for many budding entrepreneurs, building your own business makes you the boss in every way possible. That is the beauty (and sometimes the burden) of being 澳洲幸运5官方开奖结果体彩网:self-employed. You make every decision. You set your schedule.

Nobody can tell you what to do because you ജown the business. If you know how to build a better mousetrap or run꧅ a better business, this is your chance to prove it to yourself and to the world.

The Cons

• When you start your own business, you are on your own. Much is unknown. Will the product sell? Will people like it? How will you find customers? Will you make enough money to survive?
• In addition, the failure rate for startups is high. Statistics show that 20% of startup businesses don’t survive the first year; about half make it to year five; and approximately 35% last ten years. 
• If your business is going to survive, you alone will have to make that happen. You can expect to work long, hard hours with no support or expert training. Without experience, the deck is stacked against you. If this sounds like too big a burden to bear, the franchise route may be a wiser choice.
• For a closer look at the challenges you will face, compare a 澳洲幸运5官方开奖结果体彩网:mom-and-pop hotel to a nationally known chain. Some potential advantages available to a chain—that you won't have with your own small startup—are the beautiful building facade, the pre-planned building maintenance upgrades, the housekeeping system that maintains cleanliness, and the state-of-the-art revenue management software at the front desk.

The same comparisons can be done with restaurants, auto repair facilities, copy shops, and many other businesses. If, on the other hand, looking at the competition leaves you convinced that you can do it on your own, it's time for you to get started.

Examples

Franchises

Some familiar and popular franchises include:

• McDonald's
• Dunkin'
• 7-Eleven
• The UPS Store
• Snap-On Tools
• Wild Birds Unlimited
• Ace Hardware
• Supercuts

Startups

Successful startups include:

• Amazon
• Google
• Facebook
• Airbnb
• Uber
• Spotify
• Stripe
• SpaceX

The Bottom Line

People purchase a franchise because they've been proven to work. A franchise offers committed entrepreneurs a stable, tested model for running a successful business. But it also requires them to operate a business according to someone else’s business model.

For those with a big idea and a solid understanding𒁃 ܫof how to run a business, launching your own startup presents an opportunity for personal and financial freedom.

Both opportunities have their advantages and drawbacks. Be sure that you clearly understand what's involved with each before deciding on the business that is right for you.