The Global Economy and Business

A recurring topic at the moment appears to be “Whats the most suitable choice for starting up my very own business? Self-employment or buy a franchise opportunity?”. These are typically people who are out of work due to redundancy or lay off, or still employed and just desiring a change of course in their working life (like selling Gucci clothing or creating dating Ireland site).

So which are the advantages and downsides of self-employment when compared to a franchise system. Both opportunities do denote a way of working for yourself since no matter whether you form a business based on your own personal idea or buy a franchise opportunity, you will still in fact be the owner of the company and will be responsible for whether it is a success or is a failure. So here are some of the primary differences:-

Self-Employment

Pros

All income is yours to administer.
You’re able to work to your own personal ideas and find a structure that works for you.
Satisfaction in knowing you are building a company for yourself, in your own personal way.

Cons

Its known that self-employment within the UK has a high breakdown rate with in the region of 4 out of 5 small businesses failing within 3 years.
You are going to be building up a brand and reputation from scratch.

A Franchise

Pros

The NatWest/BFA annual survey consistently reports approximately 90% of UK franchisees are operating profitably each year. Other countries have similar figures on franchising.
You’re working to a business system that ought to have been proven by a franchisor.
Most franchisors provide training and support backup.
The franchise could have established branding and history which you could benefit from.
There are a broad range of franchises for sale available including franchises to suit women, home based franchises, sales franchises and a good number more. You can read some of the franchise success stories to find out more.

Cons

There will often be an upfront franchise fee to cover setup and training costs.
The majority of UK franchise businesses charge ongoing franchise management fees (often a percentage of turnover or profit) which cover ongoing training and support.
You will often have a contractual attachment to the franchise owner for as long as you work the franchise system.

These are really just the main points as there are other points. Whichever preference you choose its critical to note that investing in a business calls for determination, perseverance and a a good amount of hard work!