There are some ways for businessmen to run a business. At least, there are common 3 ways how they are running it which are starting the new one, joining in the other business and buying a franchise business and start selling the products.
Any mentioned ways have their own advantages and disadvantages and that’s what we are going to talk about in this case especially for the franchise business so you will know whether or not you are going to run such business.
Advantages of running franchise business
- Mostly, the brand and all the products of the franchise business has been popular and well known by the customers anywhere or at least at the big cities. It will be helpful in saving the budget in promoting the business brand and products since the main company of the franchise business have been promoting it since before.
- All of the raw materials and the product stocks have been provided and all you need to do just focusing on selling the products. You can then will only have one target in running the franchise business so many people are even starting it by their own without any helps by the others not even need to think about setting up the employment.
- In general, franchise have higher possibility to get success than building your own start-up. Have you got a single prove by yourself that you are successful in starting a new business? Franchise business have more proves than you think and you can be the one as well.
- Save more money than starting a new business. Considering that you won’t spend more budget in promotion and others, that can really be a good start to save the budget. Franchise business will save your time as well in the first place since there are no many things you have to research.
- You mostly will get the proven business management and strategies as well as the ongoing support from the main company or factory.
- You will get a bonus. Mostly, for certain sales you can reach in certain time, you will get a bonus. Even though that franchise business is not a multi-level marketing business, but you will get a bonus, too.
Now, here are the disadvantages
- You will need to find the best location to run your business. In other hands, most of such places have been rented by the others.
- Most of the franchise business can’t be sell online. Even though it can, the products may not what you are interesting in.
- Running franchise business means that you are also building another business brand. Although you are not spending out a single budget for promotion, still, selling the products will allow you to tell the customers that what you are selling is the best for them and not the others.
- Sometimes, you can sell the products with your own prices. If you do and the company will know, you are possible not to be their business partner in recent time as well as in the future.
- You will sign the agreement that feels like intimidating your own creativity. The ways you are running the business are possible not suiting your ways.
- If the other same franchise business will have bad reputation for some reasons, yours can be affected too because it has the same brand.
- If a business will have more franchisors, it can be harder to make the agreement that can be fear for everyone. In this point, if you are running the franchise business, you may won’t be as creative as you need because of the limitations.
Knowing the above advantages and disadvantages of franchise business hopefully will help you to define whether or not you should dive into the business.
One important thing that I need to tell you is that all of the numbers of advantages and disadvantages on above are not defining how best or worst the franchise business is, so you’d better be wise in reading the lists.