You have been working for someone for all your life, you want a change or you have been given a financial package and now are looking for something to do. You want to be your own boss and you want to own your own business but you are not sure do you look to buy a franchise or buy a business which is not a franchise? Franchises and independent businesses appeal to different people, here is a guideline of things to think about:
Buying a franchise
- you have no business experience and you are looking for continuous support from someone to help you while you own your business
- you do not know what products sell or don’t sell and you do not want to get involved in product selection, you would rather have someone else do the research and you just sell what they recommend
- you do not want to watch your competitors and monitor pricing, you want someone to provide you the pricing structure for all your products
- you do not like to design any advertising campaigns and you want someone to do your marketing for you
- you do not want to source suppliers, you would rather have someone tell you where to order, you only need to determine the quantities
Buying a business which is not a franchise
- you do not like to follow anyone else’s orders, you like to be independent
- you want to be able to do your own marketing
- you want to be able to determine the product mix in your store
- your store can be unique and not carry the products carried by franchises
- you want to be able to determine the price point for your neighbourhood, your area may be able to pay higher prices for products compared to another neighbourhood or your neighbourhood wants a premium product which is more expensive and if you are in a franchise, you cannot alter the product mix to cater to the customer mix of your particular business.
- you want to be able to source the product from the suppliers of your choice rather than the franchiser’s choice
- you believe that you can make more money than the owner of a franchise. Some franchises are very successful, others do not make a lot of money. You believe with your marketing skills, you will be able to do better if you own an independent business.
These are only a sample list of questions that you need to ask yourself before determining what type of business, franchise or non franchise that you want to purchase.