STARTING A NEW BUSINESS If you are thinking about starting a business of your own, you may want to consider opening a franchise. Here are a few starting points to help you decide if a franchise is right for you. FRANCHISE BUSINESS WITH STARTING A NEW BUSINESS By: Fatoye Olatunji As an entrepreneur, you may want to start your own business and make your own path to success. If the thought of starting out on your own without any training at all bothers you, perhaps you would be better off first trying your luck with a franchise. Here are some common beneficial features of a franchise business: Well structured business plans usually in place. Already known brand name recognition possibly. Have training in place to decrease failure rate. Ongoing support if you have questions or problems. Proven successful already, no need for trial and error. Easy to expand to multiple locations (all the same). Collective Buying Power (Everyone buys from one source) Location Research Assistance Accounting Systems in place. Many of these things are positive features that will help you succeed in business. You don't have to worry about whether or not what you are doing will work, because someone else has already tested it. As with everything, there are a few negative aspects of a franchise as well: Lack of creativity or freedom to do what you want. Often times you pay royalties to Franchisor (5% gross/year) High start-up costs (many require tens of thousands of dollars. Generally have a contract to stay with franchisor. Pay for percentage of national advertising campaigns. If you have never run a business before, franchises may be a great first step if you have some capital to work with. The knowledge and real world experience you can gain from owning a franchise can often greatly benefit you in future businesses you open. Here are some common negative features of a starting a new biz: Sketchy business plans at best. Nobody has ever heard of you, so the trust is not there. You can't buy things at a great discount typically. Little Support or Training available. A lot of trial and error to find what works and what doesn't. No shoulder to cry on or people to blame but yourself. Although these seems a bit harsh, starting a business is not all bad. In fact, many people who start a business on their own are more successful that those who own franchises. The reason is because you tend to learn more when you learn on your own. If someone is constantly telling you how to do things, you never really learn them. You know that all you have to do is go ask for help rather than digging to find the answer on your own. Here are some benefits of starting your own business: Freedom to do whatever you want. If you want to sell widgets today and the widget market dries up, you can sell thingamabobs tomorrow. What you make, you get to keep - no royalty fees. Generally lower start-up costs. You pay for only what you need, nothing else. Much higher income possibility. That is a quick outline of a new business idea vs a franchise. It is really up to you on what you feel is the best option for you. You can succeed with either option as long as you give it 110% effort.