Benefits of Entrepreneurship over a Franchise

Entrepreneurship comes with its share of ups and downs.

The most obvious advantage is the opportunity to be your own boss. Being in charge and making the important decisions regarding your business can be fulfilling, but it can also be challenging.

Here are more thoughts on the pros and cons that come with being a small business owner:

PROS

• CONTROL. You choose the work you like to do and that makes the most of your strengths and skills. The result can be more job satisfaction.
• EXCITEMENT. Entrepreneurship can be exciting and many entrepreneurs consider their work highly enjoyable. Each day is filled with new opportunities to challenge your abilities, skills, and determination.
• FLEXIBILITY. Entrepreneurs can schedule their work hours around other commitments, including spending quality time with their families.
• FREEDOM. Freedom to work whenever they want, wherever they want, and however they want draws many to entrepreneurship. Most entrepreneurs don’t consider their work actual work because they are doing something they love.
• RATIONAL SALARY. As an entrepreneur, your income is directly related to your efforts and the success of your business.

CONS

• ADMINISTRATION. While making all the decisions can be a benefit, it can also be a burden. Being an entrepreneur comes with a lot of paperwork that can take up time and energy.
• COMPETITION. Staying competitive is critical as a small business owner. You will need to differentiate your business from others like yours in order to build a solid customer base and be profitable.
• LONELINESS. It can be lonely and scary to be completely responsible for the success or failure of your business.
• NO REGULAR SALARY. Being an entrepreneur often means giving up the security of a regular paycheck. If business slows down, your personal income can be at risk.
• WORK SCHEDULE. The work schedule of an entrepreneur can be unpredictable. A major disadvantage to being an entrepreneur is that it requires more work and longer hours than being an employee.

The Advantages to Franchising your Business

Some of the advantages to franchising your business include:

• Capitalized Expansion – Expansion requires the investment of capital and resources that for many successful business owners is limited and‚ sometimes‚ difficult to raise. Franchising serves as a source for the capitalized expansion of a successful business. Rather than borrowing funds from lenders‚ franchisees invest their own funds to expand your business.
• Continuing Revenue Streams – Successful franchisors benefit from continuing royalties that are‚ typically‚ based upon a percentage of franchisee gross sales and paid on a monthly basis.
• Brand Development – The Multi-unit expansion associated with franchising serves to supplement and expand the value of your brand.  Franchisee contributions to local and regional advertising further serve to expand brand recognition.
• Economies of Scale – If managed properly the multi-unit expansion associated with franchising results in increased volume purchases and leverage with business suppliers and vendors.
• Managerial Talent – Franchisee owners – who have invested their own capital and savings – typically serve as better managers and operators than paid employees who 

  The Disadvantages of Franchising your Business

  Some of the disadvantages to franchising your business‚ include:
  • Legal Regulation – Franchising is a regulated activity and requires compliance with federal and state franchise laws.  To successfully establish a franchise‚ franchisors are required to work with an experienced franchise lawyer to establish a solid blueprint for franchising.
  • Investment – Although franchising serves as a source for the capitalized expansion of your business (i.e.‚ franchisees invest in your expansion)‚ the establishment of a franchise system requires the investment of capital to cover legal fees and the cost of establishing a franchising infrastructure.
  do not possess a vested interest in the business.

words sited www.source.southernuniversity.com www.entrepenurship.com