You certainly know that franchising is one of the most interesting business opportunities these days. However, is franchising for you? Even though it works for most people, there is no guarantee that franchising can bring you to financial independence. Every type of business has its own characteristics, which may or may not suit you. Therefore, you need to take a closer look to the business opportunity before deciding that it suits your characteristics.
Is Franchising For You? Here Are the Characteristics
Franchising is different from running conventional business. In this business, you run the business based on a pre-determined model. You just follow what has been specified by the franchise owner (franchisor). Therefore, before answering the question, “Is franchising for You?” make sure to see the following things:
Working in a Business vs Working on a Business
These two terms have different meanings when it comes to your choice of path to success. Working in your business means running your business on a daily bases. You are on the front line, serving the customers, delivering the orders, managing the stocks, or paying the employees as efficiently as possible.
Related: Should You Run a Franchise Business
On the other hand, franchising is one of your ways to work on your business. It is more of an investment rather than a job. In such a business, you focus more on a bigger picture. You set and plan strategies to grow the business into a bigger one. You are not on the front line. Instead, you work behind the scene while having every department move based on your strategies.
Therefore, franchising is for you when you prefer to work on your business. In practice, the franchisees can combine the two tactics, namely working in and on their business. The choice depends on your style, personal preferences, personality, and passion. Some people love being directly involved in the day-to-day operation while keeping their eyes on the future of the business.
Deciding which style fits you most is important when selecting the list of franchise opportunities. In fact, not all franchisors provide you with room for personal style. Make sure you choose a brand that fits your preference.
Following a System vs Setting a System
The two terms also determine your choice of business. Please note that a franchise comes with a system. In other words, when you buy a franchise, you buy a system too. You need to follow the specified system. The franchisor sells the franchise as the system has been tested by the market. Therefore, if you follow the system, you have good chance for success too.
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However, if you are a creative person and you like to innovate, franchising may not be the right path for you to success. Franchisors do not have high tolerate for risk and failure. On the other hand, innovative individuals play with these two words. If you keep buying a franchise, you will end up with failure, as you will find the system too intimidating.
When running your own business, you are setting up the system. You may have trial-and-error process before arriving at the best-fitted one. Is franchising for you? The answer is NO. So, re-consider your plan to buy a franchise if you cannot follow a pre-determined system.
Source: FX Daily Report