Entrepreneurs are in it to win it, but certain industries offer a choice when it comes to which avenue they’d like to pursue success with. In the case of franchising, those same entrepreneurs have access to a potential gold mine of opportunity, but it’s not for everyone.
Many aspiring business people are keen to make a go of it on their own, and start their business from scratch. There are benefits and drawbacks to both, and a lot of it depends on the personality of the entrepreneur in question.
COMPANY CONTROL
It’s true that starting your own business does put you squarely in the driver’s seat, with nobody else to answer to, except your customers. Franchising operates on a slightly different model – as part of a much larger team. Franchisees license the ability to open a location from the franchisor, and they will be expected to tow the company line when it comes to creative direction, branding and (in the case of restaurants) menu items.
However, the upside is quite significant. Franchisees are backed by a powerhouse team of successful business people, smart marketing and advertising teams, and a strategy that has already proven itself to be successful. You may not control all the levers of power, but you’ll never have to contend with the struggles of building a business out of the starting gate.
That being said, there are still plenty of opportunities for franchisees to be the boss. After all, each franchisee is responsible for the efficiency of the location. Employees will answer to them, and be expected to do their best at all times. Similarly, franchisees can help streamline and optimize day-to-day operations, provided they aren’t interfering with established company protocols. Being the boss is still an option; it simply comes with a few justifiable expectations attached.
RESPONSIBILITIES
Being beholden to a franchisor is not necessarily a bad thing, considering the circumstances. A franchisor will not spend all their time breathing down the necks of a franchisee to make sure everything’s running well. Instead, they are there largely as a support mechanism to help out the franchisee as the business grows.
Franchisees will still be responsible for establishing adequate financing, deciding on a location, whether to build or lease land and equipment, and hiring/firing employees. The difference is that franchisees can always ask a franchisor for advice or assistance. For instance, they will have an on-demand list of recommended suppliers and distributors, many of which already have terms with the company, and can provide better rates. That kind of clout is harder to establish with an independent business, and must be nurtured over time.
TRAINING
Many businesses fail in their first year, usually due to would-be entrepreneurs failing to understand their market, or engaging in devastating managerial practices that hamper the company’s operations. Restaurants tend to have a tougher time of it, particularly because it’s quite hard to establish a rapport with customers, and get the word out.
This has been made easier, thanks to technologies that allow for quick online sharing of photos and restaurant reviews. However, it’s still an uphill climb. Even if the menu is fantastic, there’s no guarantee that the business will manage to pull out a win. Of course, that’s the risk of any business, but some entrepreneurs would prefer a bit more stability when it comes to their investment.
Starting a business from scratch requires the ability to adapt very quickly. Many business people are unprepared for the demands and challenges of being a boss, and may require additional training via seminars and other material, in order to overcome their inherent weaknesses.
By contrast, a franchisee already has a team behind them that has done a lot of the heavy lifting. There’s no need to consider things like market demographics, as this has already been taken care of. The less things that need to be established, the more time is freed up for entrepreneurs to focus exclusively on running a franchise location, and turning it into a rip-roaring success.
CONCLUSION
The biggest difference between owning your own company, and becoming a franchisee is that the former allows for total control, at the cost of security. Always bear in mind that you can start out as a franchisee and reap enormous financial success, then go on to pursue your own dream business later on, if you so choose.
Or, you can do like many franchisees have done, and invest in more locations to maximize their earning potential. Either way, personal freedom as a business person is yours to have, depending on which avenue you wish to choose.
For more information on how you can become a St. Louis Wings franchisee, please contact us today. We’ve love to hear your business plan, especially as we continue to expand and grow our brand around North America.
