Which is better, starting a business from scratch or franchising?

Answer 1

Franchising has a 98% chance of success. The franchisers have done all the research for you. Basically, it's a turn-key operation.

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Answer 2

I'm going to have to say neither. In both cases, you are essentially buying yourself a job. You can be a little more creative in your scratch business, but it is full of risks and takes a great deal of financial backing. I looked into franchises and dismissed that idea entirely. You have to run them exactly the way you are told, and the one I was interested in even told me what hours I had to work and how many employees I HAD to hire. I would have had to book vacations exactly like an employee which I think defeats the purpose of being self-employed.
When you start a business from scratch, you are in a similar situation, if an employee doesn't show up, there goes your plans or holidays.
I chose a home business for all the reasons above and more. One reason was the low investment, I took no risk whatsoever. My time is my own, I choose who I want to work with and started earning an income within the first week, something that physically could not be done with a scratch business or franchise. For the same amount of work, or less in my case, I was able to surpass my income very quickly and everything was in place for me including bookkeeping and free websites.

Answer 3

It depends. If someone has a franchise that encompasses the kind of business that you are wanting to start, then it may be worth looking into.

They will have already figured out all the ins and outs of the business, though you will have to give them some cash to buy in.

The advantage to starting a business from scratch, is that you can do it the way you want. It's still a good idea to try to get as much advice as you can so that you avoid common pitfalls when starting a new business.

You will want to make sure that your business provides goods or services that are in demand. You may want to start small, and kind of 'test the waters' before dumping a bunch of capital into a business only to find out that there isn't enough of a market for it to support your venture.

Answer 4

Figure out what business you want to do, try to plan what your costs in money and time will be. See if there are franchises in that business and shop around. What do they cost how do they support your franchise? Insurance for the business is often a big factor in deciding on a franchise and the continued costs after the initial investment as well.

Answer 5

Hey there. I own a franchise, but I would have done things differently. I would have analyzed and studied the business model of a franchise I liked and then copied it. This way, you can always keep pumping money into your business instead of paying royalties and common marketing fees. The only drawback is that your competition is the franchise you admire or copied the model from.

Answer 6

Both have their benefits. From scratch allows you to create your own system, but it also means you will have to find out everything that doesn't work the hard way. A franchise comes with a system in place and solutions for problems they've already worked out, ...but it comes with a price.

My advice for starting your own company is figure out a system by working for someone else first. Then you can take the ground work and start your own company.

If you have the money, then go for the franchise.

Answer 7

Franchising is if you want security & someone telling you what to do & how to run your ( their ) business.

Start from scratch if you want independence & The over-whelming sense of satisfaction when things are going well.

Your current financial strength will make the decision for you.

Your total commitment & independence is required

Answer 8

Scratch...franchising can be a severe headache, theres no room for your own "creativity" its all done there way