The American dream is won or lost on the grounds of entrepreneurship. It is the idea that each and every U.S. citizen has an equal opportunity to achieve financial success through hard work, initiative, and determination. Whether you decide to invest in a franchise business or create your own independent startup (or traditional business), you’re actively pursuing the American dream.
Either way, making the decision to go into business for yourself is a big one – and weighing the benefits of investing in a franchise versus a traditional business venture should always start with a self-assessment. You should be asking yourself:
- How much freedom do I, as a business owner, need?
- How much money am I willing to pay for a franchise? How much am I willing to pay to start my own business?
- Am I equipped to build brand awareness, or do I need brand awareness built-in?
- How much control do I need over location, marketing, operations, etc.?
- How much money do I have to invest in equipment and supplies? Or do I need equipment and supplies to come included?
- How important is economies of scale? (Franchisees tend to receive bulk rates as opposed to those who go it alone.)
- How much time do I have before I start needing to see an ROI?
- How quickly can I get to market on my own versus with a franchise system?
- Do I want to be in charge of training employees for every aspect of the business from accounting to production?
- Do I have time to create my own website, or the cash to hire someone to do it?
- How much money do I have to invest in research and development? Or do I want to invest in a franchise that does that for me?
- What’s my exit strategy?
While many of these may seem like leading questions that lean toward investing in a franchise, the bottom line is simply that franchise systems do come with a support system while traditional business ventures tend to be a lot riskier. That’s not to say creating your own independent startup is doomed from the start – you just need to make sure you have enough capital and talent on-hand to circumvent whatever curve balls are thrown your way.