Starting a Business vs. Franchising: Which Path Fits your Goals?
Owning a business is a dream for many people. The idea of being your own boss, financial freedom, and contributing meaningfully to your community are only a few of the reasons it’s so appealing. But there’s an important decision every aspiring entrepreneur faces: Do you start from scratch, or do you invest in a franchise?
Let’s explore the nuances of both options!
Starting from Scratch
Launching a business on your own gives you full creative freedom. You shape the brand, define your services, and implement your vision on your own terms.
Key benefits of starting from scratch:
- Creative control: Every decision is yours
- Flexibility: You can pivot or evolve your business model quickly without needing approval
- No franchise fees: While costs are still there, you aren’t paying royalties or initial franchise fees
However, there’s a trade-off. When we talk to new business owners, one of the first things they tell us is how overwhelming it feels to start from scratch. Important factors to consider include building brand recognition, a customer base, and operational systems, as these can require a lot of time, effort, and knowledge. These are a few main reasons that the risk of failure is typically higher for startups.
Becoming a Franchisee
Franchising takes a different approach. Instead of starting from zero, you buy into an established brand with a track record of success. By franchising within an established brand, you get to leverage a proven business model, recognized branding, and comprehensive support and training systems. That means less uncertainty, faster setup, and often a higher likelihood of reaching profitability sooner.
Key benefits of franchising include:
- Proven Business Model: Franchisors have found what works, they’ve refined their operations, marketing strategies, and customer service protocols, providing a blueprint for success
- Brand Awareness: Established brands come with built-in customer trust and loyalty, facilitating quicker market penetration
- Training and Support: Franchisors offer training programs, operational manuals, and ongoing support, ensuring franchisees are well-equipped to manage their business
You don’t have to reinvent the wheel..the blueprint is already there. But, you’ll pay upfront franchise fees and ongoing royalties, and you’ll need to follow certain brand standards.
Cost Considerations and Long-Term Outlook
For most entrepreneurs, it eventually comes down to money.
Starting from scratch: Initial expenses can vary widely depending on your industry. You’ll be responsible for everything from market research and branding to systems development, staffing, and marketing campaigns. While you avoid franchise fees and royalty payments, you may face higher costs in trial and error, especially if you’re building processes and recognition from the ground up.
Franchising: Most franchises have an upfront franchise fee, plus ongoing royalties or percentage-based payments. But it also buys you access to brand equity, marketing campaigns that have already been tested, and operational support. Many franchisees find the predictability of expenses and the increased likelihood of revenue stability well worth the fees / royalties.
When it comes to the future, independent businesses can take longer to stabilize, but the upside potential is unlimited if your idea resonates. Franchises often find success sooner and enjoy the backing of a larger network, which can be invaluable in competitive industries like senior care, for example.
Making the Right Choice for You
Overall, the question is: What do you want out of business ownership?
Think of starting from scratch like building a house brick by brick, exciting, but a huge undertaking. Franchising, on the other hand, is more like moving into a home where the foundation is solid, you just get to make it yours. The decision between starting a business and investing in a franchise depends on your personal goals, risk tolerance, and resources.
At Cerna Home Care, we see this decision play out every day. Many of our franchisees tell us they chose our model because it gave them the balance of freedom and support they were looking for.
If senior care is the path you’re considering, we’d love to show you how Cerna Homecare supports franchisees from day one. Learn more about how you can make a meaningful impact while building a successful business!
