Buying a Business vs Buying a Franchise
Running a company is a long-held dream for many in the world of business so it’s no surprise that thousands of ambitious people leave their jobs every year to go it alone.
Entrepreneurs who want to run their own venture, but don’t want to start from scratch, have two main choices: buy a readymade business or buy a franchise. As both have their pros and cons, we thought we’d take a closer look at the benefits of buying a business versus the benefits of buying a franchise.
Chance of success
In general, franchises have a much better chance of success than independent businesses. Within the first five years of a new business’s life, it has an 80% chance of failure. A franchise, however, has an 80% chance of success within the same period according to a recent BFA survey. If you’re considering buying a fairly young business, it’s important to take these statistics into account when making your decision. If you’re looking for a low risk, high reward option, a franchise could well be the way to go.
Ongoing support and training
One of the biggest benefits of buying a franchise is that you’ll receive ongoing support and training from a head office.
When setting up your business you’ll receive detailed instructions on how to run the day-to-day aspects of the venture, how to prepare your products, how to build your team and how to treat customers. As all these procedures have been tried and tested by the franchising brand as well as their existing franchisees, you’re almost guaranteed to have your business up, running and profitable within a short period of time.
As a franchisee, the help and support that you receive from a central support centre such of ours will continue throughout your relationship with the franchise. This can come in many forms although training days, marketing advice and help with business development are some of the most common types of assistance.
When buying a business, however, you’re largely on your own. Although you’ll probably inherit some business strategies and procedures from the previous owner, it will be up to you to steer the business going forward.
In general, franchises are more affordable to purchase than businesses. Some franchise opportunities are available for just a few thousand pounds and in some cases, the franchising brand will be able to offer help and advice to the franchisee when it comes to raising the necessary finances. As you’ll be buying into a proven business model, you’re also more likely to see good returns on your investment within the first few years of trading.
If you’re interested in buying a franchise of your own, you can find out more about the opportunities we offer by taking a look around our site or getting in touch with a member of our team.