What is the Difference Between Owning a Business and Owning a Franchise?

Five Star Bath Solutions Franchise

Becoming a business owner is a big and exciting step – one that many people work hard to achieve. Whether it has always been your dream to own your own business or you’ve recently decided that owning a business is something you want to do, there are a lot of things to take into consideration. For example, would it be better to start your own company or purchase an existing business? Would it be better to own a company independently or purchase a franchise?

Deciding between owning your own business and owning a franchise can be a difficult decision to make, especially if you don’t know the biggest differences and benefits of each.

Owning a Business

When you own your own business you have the freedom to make changes to your products and services as you see fit, but you will typically spend more in investment costs. As an independent business owner, you will also be responsible for sourcing and suppliers for the products and services you offer. Although you will be able to market as you see fit, you will have to start marketing from the ground up and work hard to build brand recognition and trust in a competitive market.

Starting your own business will give you the opportunity to be creative and innovative and will likely give you more opportunity to learn and grow in business by experiencing all aspects first-hand, but starting your own business will require a lot of effort. And, as great as starting and owning your own business can be, startups typically have a higher rate of failure than franchisees.

Owning a Franchise

One great benefit of owning a franchise is the support that you’ll receive from the franchise owners as well as other franchisees. Having a support system is often under-valued, but those who’ve had the backing and support of established and experienced professionals know what a difference it can make.

Owning a franchise also gives you a leg up when entering the market. Rather than having to establish your brand from scratch, you get to start out with a trusted and recognized name – the effort required to get customers is much less than starting a business on your own. Not only are the name and branding already established, but you also have access to marketing materials, established supply chains, and other resources that can save a lot of time and money. On top of that, although no business is risk-free, many franchise systems have a higher rate of success and are less likely to fail than those who start their own business.

Whether you choose to purchase a franchise or start your own business, there are a number of benefits to each. It’s important to carefully consider which one would be best for you before making the final decision.