Boss Lady

Advantages of a franchise business vs starting from scratch

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Living the American Dream has been a goal of so many Americans for many, many years. The ability to achieve success in a world where everyone has an opportunity to succeed doesn’t seem so far fetched these days, especially for women entrepreneurs. There was once a point in time where women “belonged” in the kitchen, making the American Dream a boys-only club… but oh how times have changed.

Today, women are living their American Dream just as much as men are! You wouldn’t believe how many women are the faces behind billion-dollar businesses… and that just goes to show you the power of girl power, especially in the business world. Upon entering the world of business, one of the most important career decisions you have to make is determining if you want to be on the clock for someone or if you want to work for yourself? It’s a tough decision to make but lots of people have a “lazy” misconception about working for themselves.

Working for yourself is not what you think…

Becoming your own boss doesn’t always mean that you have to start from scratch. There are tons of people who have the desire to start their own business and they actually have the business knowledge and business sense to do it… But it’s hard to come up with the right idea or an idea that’s already out there but you have to figure out how to make yours stand out from the competition; none of that is easy and it definitely won’t happen overnight… So, what are your other options? How can you become an entrepreneur without having to start from the ground up?

If you want to become an entrepreneur without having to start from scratch, you always have the option to buy an existing business… doing that allows you to still be your own CEO but with much less hassle. A fancier way of achieving entrepreneurship this route is called entrepreneurship through acquisition.

What you should look for in a business

Being the smart, acquisitive female entrepreneur that you are, you’ll want to look for a business that has produced steady and stable income rather than a business that’s hot for the moment but the fire is fizzling out; you want a slow burn… that’s what makes a business solid and solid businesses are what bankers and investors feel more comfortable giving money to; it’s just a safer risk to them.

Advantages of taking the franchise route

It’s Much Easier to Obtain Financing

Getting a loan for your business that you’re starting from the ground up is looked at as being a huge risk to investors and lenders… why? Because the majority of them fail within the first five years, according to the Small Business Administration. With a franchise, investors and lenders see them as being part of an already successful system, which in most cases, is due to a solid infrastructure. Because of that, lenders are more willing to loan you the money you need AND are most times, willing to loan you the money on pretty good terms.

It requires less money to start

The amount of money it takes to get a business started from the ground up is way more expensive than taking on a franchise business. Can you guess where a nice chunk of that money is going to? If you guessed marketing, then you’re absolutely correct. It takes a substantial amount of money to market a business to attract customers… and the thing about it is that you won’t know exactly how much money you’ll need for marketing a new business.

Spending too much can leave you in the hole before even getting a real start on your business venture. With a franchise business, it already has a well-established customer base and it already has projections on how much has been spent on marketing so you can conclude that you will probably be spending around that same amount or more/less… the main thing is that you will have a good idea of what you’re getting yourself into.

You don’t necessarily need an extensive background in business

There are several entrepreneurs out there that don’t have business degrees and have very lucrative businesses but with starting a business from the ground up, you will at least need to have some type of business sense… if not, your business will inevitably fail. With franchise businesses, they’re not going to let you run a business without providing you with extensive training courses and on-location training to make sure you’re able to run your franchise and achieve success.

You can skip the whole trial and error sector

When starting a business from the ground up, you’re definitely going to experience lots of trial and error. From spending too much on marketing or marketing to the wrong target audience, these mistakes can, unfortunately, lead your business to failure. With a franchise, trial and error has already been figured out… all you have to do is step in and follow the guidelines that have been laid out for you.

What’s holding you back?

Whether you want to start from the ground up or take the franchise route, what’s stopping you? Is it fear of failure or fear of success? Whichever one it is, get it out of your head. As a female entrepreneur or potential female entrepreneur, you have an empowering truth within you that pushes you to take on any challenge thrown at you.

Take on that challenge today. If you want to start your own business, but just know that starting from the ground up isn’t your only option; you can buy a franchise and still be the successful businesswoman you know you can be.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best.We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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