If you have a great business idea, then it’s almost always a good idea to try to pursue it, so long as you have the evidence that it is viable and that there’s a market there to support it. However, what if you don’t have that great idea but you still want to run a business a make a profit? Traditionally, the franchise is the option that some would suggest, but is it really a good idea?
Pro: Enjoy a ready-made business plan
A franchise operates with you adopting a pre-made business plan, which will include specific products, marketing plans, lead acquisition strategies, and so on. This way, you don’t have to come up with a business plan yourself, and, providing that you can point to successful examples of the franchised business in action, you know you have a roadmap to success.
Con: You don’t have as much flexibility
Since the plan is laid out for you already, you’re not going to have as much wiggle room when it comes to your own marketing, sales, or product strategies. This can differ from franchise to franchise but, usually, the brand owners have a pretty tight grip to make sure that each business is representing the company name in the way that they want.
Pro: You can find the franchise that suits your preferred work-life
While you don’t have as much flexibility in how you manage your franchise business, you do have plenty of options in what kind of business you run. There are franchises in many industries, as well as in different working fields. For instance, there are home healthcare franchises that can see you making money without needing to rent or buy any office space. As such, they can be great for those who want to run a business from home due to family or other responsibilities.
Con: They sometimes have high startup costs
Since everything is ready for you when you start a franchise, you tend to have to spend more to get them started in the first place. Usually, this is the first batch of products that you have to sell, or it may include decor items for any property you’re running. Either way, you need to make sure you acquire the capital you need ahead of time
Pro: You can jump in on trending industries
As mentioned, there are franchises across all kinds of industries. There also tend to be franchises that follow the trends out there, since franchising offers the brand owners a quick way to expand and capitalize on a booming sector of the market. Look at some of the fastest-growing industries and you will almost always be able to find a franchise that could allow you to set up your business in that corner of the world.
Like every type of business, franchises do have their drawbacks. However, for many, the pros way outweigh the cons, so consider your own wants and circumstances and whether or not a franchise might be the option for you.