The Road Toward Self-Sufficiency: Independent Ownership vs. Franchising
National alternative career coaching company shares key factors to consider when exploring business ownership; hosts “Start a Business Weekend” virtual franchise expo March 26-28
March 24, 2015 // Franchising.com // Southbury, CT – Small businesses are a vital component of the U.S. economy, making up nearly half of the American GDP and creating 63 percent of new jobs between 1993 and mid-2013, according to recent studies by the U.S. Small Business Administration. The Entrepreneur’s Source, the nation’s leading alternative career coaching company, says that - considering the massive impact that small business ownership has on the economy - it’s crucial that small businesses succeed and continue to be a hub of employment.
For those entertaining the idea of business ownership and looking to explore what options are available, The Entrepreneur’s Source is hosting a complimentary, virtual career expo. The Start A Business Weekend® (SABW) expo will take place March 26-28, 2015. Because business ownership can be accomplished in many ways, Terry Powell, founder of The Entrepreneur’s Source, says that among the first things for would-be entrepreneurs to consider are long-term life and career goals, needs and expectations, and how business ownership can be best used to achieve success. Deciding between independent ownership (e.g., starting a business from scratch or buying an existing business) or joining a franchise system is the next crucial step toward entrepreneurship.
To start the conversation, Powell shares key aspects of business ownership for would-be entrepreneurs to consider when deciding if independent ownership or franchising is right for them:
- Ownership Structure: In creating an independent business, the owner is able to call all the shots – inventory, services, business hours, etc. – and is free to experiment and develop his or her own strategies. While this is great for some, assuming the cost of research and development may be too risky for others. Franchisors have already tested replicable business models and have systems in place, saving the franchisee significant time, energy and money.
- Overall Investment: Typically, franchising has a lower total investment than independent ownership because the franchisor plays a large role in the start-up of the business: helping with real estate site selection, lease negotiations, vendor discounts, marketing support, etc. This also means that a franchisee has a financial obligation to the franchisor, and will likely have to pay a monthly royalty fee, but the upside potential should more than pay for itself. On the other hand, in an independent business, the owner can choose to delay expansion or downsize service offerings when money is tight.
- Marketing and Branding: In other categories, the preference between franchising and independent ownership can be judged based on perspective, but in marketing and brand recognition franchising has a clear advantage. If the entrepreneur invests in a long-standing, well-known company, the brand and service offerings will already be common knowledge. Franchisors are also able to invest much more money into advertising, marketing and public relations than independent owners, meaning a franchisee has to do less to get more people to walk through the door.
- 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 those who prefer to leverage existing systems, the support that a franchise system provides can be priceless – the franchisor only succeeds if their franchisees succeed, so ongoing support is essential to create this win-win relationship. Outside of support from the franchisor and franchisees in the system, franchising allows owners to benefit from collective buying and bargaining power.
“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 Powell. “Self-sufficiency through owning a business allows you to achieve your desired ILWE® – income, lifestyle, wealth and equity goals – and the satisfaction of being in the driver’s seat of your own career path.”
It’s necessary to take all aspects of business ownership into account to determine if franchising or independent ownership will bring the most success based on the owners’ individual skills, talents and preferences. Start A Business Weekend gives attendees the opportunity to explore a variety of franchise opportunities and speak with a coach to discover if franchise entrepreneurship is the best path toward self-sufficiency. Registration is free at www.StartABusinessWeekend.com.
For more information about The Entrepreneur’s Source and pursuing franchise entrepreneurship as a second career, visit www.entrepreneurssource.com/.
About The Entrepreneur’s Source®
The Entrepreneur’s Source is North America’s leading alternative career coaching franchise dedicated to the entrepreneur, with more than 150 offices in the United States and Canada. Dominating the $1.5 billion dollar Business Coaching/Consulting franchise market in North America, the company offers a full range of services to individuals seeking alternate career options and to franchise businesses looking to increase performance. For more information about The Entrepreneur’s Source, please visit http://www.EntrepreneursSource.com/.
The Entrepreneur’s Source, Start A Business Weekend and ILWE are trademarks of TES Franchising, LLC. All rights reserved.
SOURCE The Entrepreneur’s Source®
Fishman Public Relations
Phone: (847) 945-1300 ext. 263