Every buyer goes through the dilemma of purchasing an independent business or a franchise. This is one of the first decisions that they will have to take about what kind of business they hope to acquire. It is a known fact that buyers can and do succeed with both franchises and independent businesses. But there are certain differences between the two that needs to be studied in order to know which business model fits your business and personal goals perfectly.
Franchise or Independent Business? What to Buy?
Some buyers thrive as independent business owners, whole others prosper as franchise owners. There is no real solution or answer to the dilemma of owning an independent business or franchise. You have to take into consideration the factors that differentiate them from each other and with the help of your trusted advisors, your research and your family, you will have to decide the one that is perfect for you.
Model of Ownership
From the perspective of ownership, business franchise opportunities are quite different from small businesses. Franchise owners do not have the freedom to change the products or services based on their personal desires or adhering to the changing market trends as opposed to independent business owners. The mother franchise makes the decision about product line and other variables to a large degree. The independent business owners, on the other hand, do not have the security of knowing the product line and the business model has not been tested and proven.
This means that although franchise owners have to somewhat sacrifice their independence in the decision-making process; they enjoy the security and stability that comes from being part of a larger organization that has a proven track record.
Purchasing an independent business involves a higher cost and additional costs for the operating and management of the affairs. Whereas, investing in business franchise opportunities in Mumbai usually involves lower total investment costs. Also securing finances for purchasing a franchise is easier as compared to buying independent small business because there is e=less risk involved in the former ones.
Established Brand Recognition
In most cases, investing in business franchise opportunities in Pune has an advantage over owning independent business in terms of brand recognition. The corporate marketing strategies go through the process of trial and error and if the mother franchise has a national appeal then their advertising strategies is bound to have positive effects on the local franchise owners.
Business franchise opportunities in Delhi and other cities of India are especially popular among buyers who lack extensive industry or business experience. This does not mean that experienced buyers do not buy franchises, but the franchise model of business makes it easier for first-time business owners to succeed through an established and proven model of business. Whereas, independent business owners have to do everything on their own and there is no way of getting assistance or help when they get stuck on the way. They have to access to the help provided by franchisors to franchisees in marketing, human resource, supply chain management and other departments.
The decision ultimately lies with the buyer. The model that works for your friend, may not work for you. Hence, assessing individual interests and skills is particularly vital. Although if you are looking for quick success and less risk then investing in business franchise opportunities will prove extremely lucrative.