Franchise vs. Small Business – What is Your Preference?
If you have ever felt like the world of entrepreneurship might be for you, now may be the time to get out and start something new. With the economy slowly rebounding opportunities are available to those wishing to take advantage of them.
Deciding exactly what you want to do and how you want to do it can be a difficult decision. To begin, we recommend that you sit down and map out what is most important to you when running your small business. If you have poor health, you may want to consider a small business ownership option that would provide health insurance such as a franchise. If you crave your freedom and independence to run the business the way that you prefer, you may want to architect your small business operation from scratch as a start up. There are many advantages and disadvantages to both options. It is simply a matter of balancing out which business situation will work best for your needs.
The start up costs to run a small independent business is generally less expensive than buying a franchise. With an independent business, your largest expense may initially be stocking your inventory. Pricing for that can really vary based on the product you are selling. You can offset some of the inventory cost by finding out exactly what your customers have bought and how much product they have bought from your competitors.
The start up costs for a franchise’s also varies, and can range anywhere from $20,000 – $500,000. This may or may not include inventory costs. Often times the costs are significantly higher if you need to purchase a new building to house your franchise.
Advantages and Disadvantages to Start-Up’s and Franchises
The benefit of running an independent small business is that you will have the freedom to run the business in a way that you prefer. You will have the flexibility to choose your hours. You will also be able to outline your own business operating procedures. Also, because you are not a large corporation, you can customize your products and services to meet the needs of your customers more efficiently. As a small business, you will also have more flexibility to let your creativity and originality shine. There are no restrictions on how you market your small business.
Perhaps the largest disadvantage small business owners face is that they do not receive health insurance through their small business. You will also most likely have to work more than 40 hours a week to meet the many demands of your small business.
The advantages of of owning a franchise are really for those who like a little more job security than a small business can offer. Most franchise businesses come with a built in marketing plan to promote the business. They also offer training procedures for employees and established rules to operate the franchise in a way that complies best with corporate. Oftentimes a franchise company already has a built in awareness of the brand. This can mean that you have a built in customer base ready to purchase your product.
Perhaps some of the disadvantages of purchasing a franchise are that you must follow strict rules when running your franchise business. You will also be required to fill out a large amount of legal documents designed to help protect the franchise corporation as a whole. Also, if the franchise corporate brand is threatened with any kind of scandal or negativity, this will affect your independent franchise business.
While it’s true that a franchise business can oftentimes be a safe bet. This may also mean that because you are undergoing less of a risk, you also may not receive the same large reward that is possible if you own your own business. Additonally, there are many advantages and disadvantages of accepting credit cards which needs to be considered.
Some of the Best Franchises
Some of the top successful franchise businesses can be found in your local neighborhood. These may include:
Jimmy John’s Gourmet Sandwiches – Jimmy John’s is a well established franchise business that has been established for over 30 years. The main product is gourmet sandwiches that are made fresh every single day.
Subway – Also an extremely popular sandwich shop, they capitalizes on the health of their customers by offering a health alternative to fast food restaurants.
Dunkin Donuts – If delicious doughy pastries are your passion, then you may want to consider running a Dunkin Donuts shop. They carry a variety of delicious donut options that are sure to please your customers and this franchise is well loved everywhere.
Carl’s Jr. Restaurant – An extremely popular fast food restaurant. This franchise has made sure that their hamburgers are deluxe.
Supercuts – If owning a salon has always been a dream, you may want to consider the Supercuts franchise.
Some Great Small Business Ideas to Get You Started
There are many different unique small business ideas that require a low amount of start up cash to get started. These include:
Accountant – Accountants are typically in huge demand, especially around tax time. If you love numbers and you love to save money, than you may want to consider opening your own small business accounting shop.
Construction – The construction industry covers a wide variety of options for a small business owner.
Financial Planning – A financial planner can help families secure their financial future by advising families on how to best plan for life’s many different occasions such as death, retirement and unemployment.
Bakery – A bakery can encompass many different aspects of baking, from cookies, to cakes to specialized pastries.
Auto Mechanic Shop – A trusted mechanic is gold to most customers. While starting an auto mechanic shop may be a little more expensive than some of our previous suggestions, the rewards to owning an extremely popular shop could be worth the expense.
SecureGlobalPay understands the challenges of operating a small business or franchise. We can deliver a full suite of merchant services to keep merchants satisfied. Our credit & debit card acceptance solutions include both the latest stand-alone terminals with enhanced features such as EMV, NFC, receipt suppression, tip editing and tab forwarding .
We also have the flexibility to integrate with most of the major POS management systems on the market (i.e.Micros, Aloha) as well as many other various hospitality and VAR software solutions.
Complete Payment Solutions
SecureGlobalPay supports all major credit/debit payment options your restaurant business will need including: Visa, MasterCard, American Express, Discover, Diners’ Club,
China UnionPay, Carte Blanche, JCB, EBT cards, corporate and fleet cards and gift & loyalty cards. Our rates are highly competitive, settlement is fast and reporting is comprehensive.