If you plan to start your own business but don’t know which business model is right for you, then you can choose either to start with a franchise or a conventional business model. Both have their own strengths and weaknesses.
In this article, I will give you some pointers to help you decide which is right for you. We are going to look at three main factors. One, do you like challenges and risks in business or not. Two how much money do you have to start your business and finally number three what knowledge and experience do you have with business.
Let’s talk about the first one, how do you feel about challenges and risks in business? If you are the kind of person who like to challenge yourself and a risk taker then conventional business is right for you because definitely you are going to face obstacles and challenges along the way and you will need to solve a lot of problems in running your business daily operations.
On the other hand, if you don’t like challenges and you are a risk averse person then franchise is right for you because all the blueprints on hot to run your business are prepared for you. All you need to do is just follow the business operating procedure step by step as outline in the blueprints or the business manual provided by your franchisor.
Next how much money do you have? If you have a lot of money I am talking in the range of hundreds of thousands of dollars to few million dollars, then you have the leisure to choose anyone of them. But, if you have limited amount of money to start with may be you just have few thousands dollars for your business then you have no other choice except to start a conventional business.
If you only have couple of hundred dollars don’t start a conventional business, instead use MLM business as your first business venture. You can learn a lot about running your business and managing other people with MLM business. And if you don’t have money at all but still want to start a business then you can start as an affiliate internet marketer. That’s it about the second factor.
Finally the third factor, your knowledge and experience in business. If you do not have much knowledge and experience or no knowledge and experience at all in business then franchise is right for you, because as mentioned earlier as a franchisee i.e. the person who buys the franchise form the franchise owner also known as franchisor, you will be trained and guided every step of the way in your business.
On the other hand as a conventional business owner you are on your own. You have the total freedom to run your business as you wish thus you are responsible on whatever decisions you make.
There you have it, three major factors that you must consider in order to choose between a franchise business or a conventional business.
About The Author
Since 1996 Moslem has been working with thousands of individuals and entrepreneurs helping them to develop and grow in the areas of personal development and business.
As an author, MBA graduate (Ohio University), BBA Finance graduate (Western Michigan University), business & finance lecturer and a full time entrepreneur, he is passionate to share his knowledge and experience with anyone who would like to get into business and also to existing entrepreneurs to achieve their business goals.
Moslem has written couple of books on business, management and motivation, and has produced several video tutorials on business and entrepreneurship.