We all know that it is not easy to decide whether you are going to start a business or continue working with your boss. For those who want to change their life, you need to make a choice. When starting a business, you can either create your brand or buy an existing business. As an aspiring entrepreneur, it is one of the major life decisions that will change your life forever.
Why shouldn’t you invest in a franchise business?
Everyone can franchise anything. In fact, some companies have a proven system with a well-known brand name, but that doesn’t mean you need to invest in a franchise to start your own business.
If you want to become a successful entrepreneur, then you need to be careful when it comes to making decisions.
Here are the reasons why you shouldn’t invest in a franchise business.
- The profitability is questionable.
Here is one of the reasons that you don’t want to miss. Most franchise owners or companies that provide investment opportunity to start your own business using their brand name and to sell their products don’t provide complete information. They will only tell you the average figures and don’t offer a guarantee of success.
- The start-up cost is very high.
Franchising a business needs higher capital than building your brand. You need to pay for an initial franchise fee that is not refundable. It ranges from hundreds to hundred thousand, what if you change your mind and you want to start your own business? You’re just wasting your hard earned money for nothing.
- Lots of competitors.
There are so many competitors when it comes to franchising, companies who operate in your local area and other business owners who franchise of the same company that you are planning to invest. Anyone can operate anywhere. What if someone sells the products under the same brand name across the street?
- Can limit your creativity.
Yes, you read it right. Franchising can limit your creativity because you are not just buying the brand name and products, you are also buying its company’s business plan, and you need to follow how it operates. You can’t just make any adjustment or add new products to meet the needs of your target customers.
- You are not allowed to become an independent business owner.
Once you franchise a brand name, you can’t open a new business that sells similar products. For example, you are selling a pizza under a well-known company, and you come up with a new idea that can improve the quality of the product. You can’t start a new brand name due to non-competition clauses.
Why do you need to create your own brand?
- Low capital.
Unlike franchising, you don’t need to spend thousands just to start your own business. In fact, you can create your brand name with little capital. You don’t need to rent a space to operate your business and sell products. You can start your own business from the comfort of your home by either selling online or using a small space in your home.
- You can improve your current products or add a new one.
If you start your business and create your own brand name, you are free to do whatever you want. You can improve the quality of your current products or add a new one. If you want to expand your business, you can do that without any problems. It’s much easier for you to make a decision and grab new opportunities that will help you upgrade your business to the next level.
- You can make a better first impression.
When it comes to franchising, you can’t just change how people see the products and the brand name. On the other side, if you start your business from scratch, you have a chance to make a better first impression. In addition, you can build great relationships with your target customers. You don’t have to deal with those unhappy customers who share negative reviews about the company who offers to franchise.
- Business opportunities are not limited.
If you are an entrepreneur who starts your own business, then there are so many great opportunities waiting for you not just locally, but also digitally. You are free to contact other businesses, build valuable connections and get more leads. You can make decisions and take actions using your business plan. In addition, you can use and apply your ideas because you own your business.
- You will get all the credits.
If you start a business with your own brand name, you will meet more people. Once you reach the success, you will get all the credits. Everyone will see you as one of the most powerful and successful entrepreneurs. In addition, the reputation of your brand will go with you.
You can change your life and achieve your goal without having a huge capital. If you have something to offer or you have a great idea, then turn it into a business.
If you have any questions, use the comment down below.
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