The Entrepreneur’s Source Terry Powell Discusses: Franchising vs. Independent Business Ownership
The Entrepreneur’s Source Terry Powell Discusses Franchising vs. Independent Business Ownership
The number of small businesses in America continues to grow – demonstrating that business ownership is a viable career for many people. Business ownership is an optimal vehicle to success for those looking to leave corporate America and take control of their career.
“In general, business ownership requires a large amount of personal investment and hard work to succeed, but the benefits of success are never-ending,” said founder of The Entrepreneur’s Source Terry Powell. “Self-sufficiency through owning a business allows you to achieve your desired Income, Lifestyle, Wealth and Equity (I.L.W.E.) Goals, and the satisfaction of being in the driver’s seat of your own career path.”
There are many entrepreneurial paths that an aspiring business owner can take to achieve self-sufficiency, and business ownership isn’t the same for everyone. Among the first things for a hopeful business owner to contemplate is whether independent ownership or joining a franchise system is the right path to follow for their unique skillset and desires.
The Entrepreneur’s Source Terry Powell on Franchising vs. Independent Business Ownership
It’s important to examine the benefits and drawbacks of both routes to business success – franchising and independent ownership – to consider which pathway may be the right fit for your unique I.L.W.E. Goals. To start the conversation, The Entrepreneur’s Source Terry Powell sheds light on some of the differences between independent business ownership and business ownership through franchising to help you decide with path is right for you.
- Business Structure: When an aspiring entrepreneur takes the route of independent ownership, they have the ability to call all of the shots. They’re in charge of creating and monitoring inventory, services, strategy, hours, marketing etc. When looking at franchise business ownership, the franchisor largely makes the larger decisions. Franchisees are truly never in their business alone and have someone to turn to for assistance and guidance. In franchising, everything is tested and proven to work, and with an independent model, the owner is free to experiment and develop their own strategies. Both models can be successful depending on the aspiring business owner’s personality and work style.
- Total Investment: When looking at opening a franchise business, the franchisor typically plays a large role in helping to get the business up and running. They oftentimes assist with real estate site selection, lease negotiations, vendor discounts, marketing assistance, grand opening support and more. As a payment for this assistance, franchisees oftentimes pay a monthly royalty fee to the franchisor. In an independent business, the business owner chooses how much money they’re willing to put into the business and at what times. The owner can choose to delay expansion or downsize service offerings when money is tight, but because of financial obligation, a franchisee may not have this option. However, it may take an independent business more money to open shop and turn a profit because they don’t have the assistance, experience or expertise of a franchisor.
- Marketing and Branding: When a business owner takes the route of franchising, they are investing in an established and probably well-known company, so the brand and service offerings are common knowledge among potential consumers. Franchisors are also able to invest much more money into advertising, marketing and public relations than independent owners, meaning a franchisee has to put in less work to get people to walk through their door. Independent business owners don’t have this same luxury because they don’t have the same amount of resources or recognition from the get-go. They will most likely have to work harder and put more money into building a presence and recognition in their community.
- Operational Assets: For some, independent ownership may supply an outlet by which they can creatively manage their business and drive their way toward success. For aspiring entrepreneurs that have a business background, independent business ownership can give them more freedom to experiment in their business. For those with less experience or knowledge, the ongoing support that a franchise system provides can be priceless. In franchising, the franchisor only succeeds if their franchisees succeed, so consistent support is essential.
It’s necessary to take of the aspects of business ownership into account to determine if franchising or independent ownership is the right fit for you based on the unique skills, talents and preferences that you bring to the table.
Attend Start a Business Weekend to Explore Your Options!
For those individuals considering business ownership as an alternative career path and are looking to explore their options, The Entrepreneur’s Source is hosting a complimentary, virtual career expo, Start A Business Weekend (SABW) March 26-28. Start A Business Weekend gives attendees the opportunity to explore a variety of franchise opportunities.
“Attendees have access to three days of industry experts’ informative sessions hosted in the virtual auditorium, without leaving their home or office,” The Entrepreneur’s Source Terry Powell said. “It’s complete convenience—coaches are accessible all weekend long to guests. Plus, attendees gain all the benefits of a franchise expo without the travel expenses and time commitment.”
All attendees have access to 80 virtual online booths, free videos, coaching conferences, enlightening seminars, a virtual briefcase and networking opportunities. After SABW concludes, all attendees will be given a 60-day pass to revisit their SABW resources and explore their exclusive franchise opportunities in more detail.
To attend Start a Business Weekend, register here: www.StartABusinessWeekend.com. The virtual fair will be held March 17-19 from 10:00 A.M. to 7:00 P.M. EDT and is free for all to attend.