Have you ever considered starting your own business? As an entrepreneur, two primary options may come to your mind when you are thinking about establishing your business, and they are franchise and start-ups.
No matter which journey you want to take, risk assessment is a vital part of getting it rolling. Both options will have their rewards as well as issues. For an ambitious young man who wants to be free to do whatever he prefers, start-ups can offer absolute advantages over franchises.
However, as a young entrepreneur, assessing risks and make sure each penny is spent with purpose is crucial. There is little question that joining a franchise is safer than a start-up for the reasons we discuss below.
1.You do not have to build a brand from scratch.
Building a brand can be one of the most challenging and time-consuming activities ever encounter when starting a business, which often takes years even decades to develop your ideal brand image. Either direct or indirect competitors will challenge how strong your brand is, as well as test how loyal your consumers are. Lack of resources and time can easily defeat newcomers to the industry.
Franchises already have an established brand that can be used by its franchisees. A system for branding, from logo, slogan, to national advertisement and promotional activities are well structured with their experienced team. Therefore, as a franchise investor, you can obtain these benefits without many efforts and start your entrepreneurial journey.
2.Network supports are much stronger with a franchise.
Let me put it straight: networking is crucial. When things get challenging, start-up owners can only rely on themselves unless they have been invested by angel investors who are willing to provide support. Furthermore, this group of entrepreneur typically operate alone without a useful platform for them to share and learn knowledge from others who have common goals.
However, if you are in a franchise, the franchisor offers chances for everyone to share their opinions on various operational decisions, as well as receive feedback from them so that they are continually improving. For instance, XIMIVOGUE offers opportunities from local to international that gather their franchisees in conferences, so that ideas can be exchanged and be utilised in their local operation.
3.Financial advice and even an allowance can be given.
Financial difficulties can come to entrepreneurs during the early stages when building start-ups. They have to do all of the legwork to secure the resources for their business, such as attend meetings to introduce their ambitious plan to potential investors. More importantly, they do not even understand how much they need to launch the business because of their lack of experience in finance and management.
On the other side, franchisors have special forces in finance that can provide advice on managing your cash flow. XIMIVOGUE even goes a step further by assigning experienced managers to your store during the beginning of your journey, so that he/she can supervise activities, correct mistakes and provide suggestions promptly. It is valuable to any person new to the zone, and these policies can bring entrepreneurs on the right track as fast as possible.
4.The structure for being successful has been proven.
Having a proper framework and putting blocks like marketing, finance, human resources and many more all together is not as easy as it sounds. A misplacement on one part can lead to the collapse of your entire plan.
Successful franchises such as Subway, McDonald’s, XIMIVOGUE have proved their robust business framework and solid foundation reflected by sustainable growth rate and positive franchisee feedback. A systematic structure with dedicated operational knowledge will lead entrepreneurs much further in their careers.
5.More operational resources from the headquarter.
Proper training, logistic support and computer hardware supports are some of the essential resources a franchisor can offer. Moreover, good headquarters usually have a well-established supply chain that can be used by any franchise owner. These operational resources can take your steps further than start-up owners, meanwhile also securing all branches work efficiently.
All these benefits do not obsolete disadvantages from joining a franchise, such as less freedom in conducting businesses. However, a franchise does provide significant advantages over start-ups if you are lack of experience and finance. A franchisor can maximise the possibility for newcomers to be successful.
Company Name: Guangzhou Xibin Trading Co., Ltd.
Address: 18F, International Finance Center, Guangzhou, China