There are many business opportunities to choose and franchise systems could often provide proven, viable option to produce income. However, we should know what kind of franchise business opportunity we could get. We should properly weigh the pros and cons of starting a home business or buying a franchise. Cost is an essential component when we are planning to start a new business and it should be considered quite early when we look for ways to start a new business. Franchise license could cost us thousands of dollars, depending on the brand. Once we purchase the franchise, we should also consider overhead, such as inventory, equipment, building, personnel and their health benefits.
However, with franchising, we don’t have to spend much on advertising and marketing, because they are often handled by the franchisor. This will allow us to focus more on the operational issues, instead of other things. With home-based business, start-up costs can be significantly lower, especially if family members are willing to help with low wages. We don’t need to worry about hiring employees and deal with their health benefits. However, in many cases, our products can’t promote itself, so home-based business need to spend more on advertising and marketing. Finding a proper system can also be quite challenging, while franchisees can follow the laid out formula quite easily.
Time is very important because any entrepreneur will try to leverage time in their favour when they are starting their business. If we value our initial investment, we should also value our time. If we are left behind schedule, then it will become increasingly harder to obtain a steady stream of income. If we have trouble of managing time, then home-based business may not be a good option. Franchises offer good solutions on how we should use our time properly. We won’t be left confused on what we should do to catch up. We will know that we need to open at 9AM and close the door at 10PM. It can be much more difficult to handle time with home business and many of them are closed temporarily just because one of the family members is sick.
On the other hand, home businesses are not confined to a corporate schedule that rigidly tells us when we have to open. If our original intention is to have more flexibility in time management, then we should open a home business. We may open our business a few hours late if we really need it. However, we should still try to be 100 percent accountable with how we handle our business. We should put in all the necessary efforts to make sure that our business thrives and survives. It is possible to do this at our convenience.
Franchise businesses are often guaranteed to give us a steady stream of consumers, because we already have a strong brand, but it can take up to four years to recoup all of our investment. Home businesses are often cheaper to set up, but finding loyal customers can be a struggle.