First, assess appetite for risk, ask lots of questions
In the past several decades, franchising has become not only a formidable American institution, but also one of the nation’s leading doorways into small-business ownership. Every year, thousands of individuals choose the franchise route.
But is starting a franchise really a better choice than starting your own business?
That’s something you’ll need to answer for yourself. But it’s worth the time and effort to find out. To make the right choice between starting a business and buying a franchise, as well as which franchise to buy, you need to conduct careful research. It’s a big investment on your part, so it’s imperative that you investigate before putting up the money.
Franchise businesses are growing at a rapid pace, according to the International Franchise Association. About 400,000 such businesses employ nearly 10 million people with a payroll of $230 billion. There’s always a hot new franchise on the scene. Curves, for example, a network of franchised women-only fitness centers, grew nearly 38 percent in a recent year.
If your appetite for risk is low, a franchise may be your best choice. A franchise lowers the risk because someone else has already pioneered the concept, tested the ideas and found out what works and what doesn’t.
If you want to do all of those things with your own idea, then start a business yourself. If not, a franchise could be the way to go.