Best bet for a new business: franchise or stand-alone?

Starting a new business can be exciting. Before you begin, consider if you want a stand-alone enterprise or franchise. These helpful tips will help you decide.

• Are you a creative type who thrives on going your own way and doing your own thing? If so, a stand-alone business may be your best bet. A creative, extroverted person may feel confined and constricted in a franchise business and prefer to have complete control over the direction their business takes.
• If you are analytical and detailed, and prefer predictability, certainty and exact procedures, a franchise is the better choice. A franchise may suit you simply because you are buying into an established system with set procedures and structure.

The major advantage a one-off business offers you is the freedom to do as you please. You are the boss, and you call the shots. You can take the business in any direction you choose; however, this also means that the future of your business can be uncertain.

• Over 80 per cent of stand-alone businesses fail in their first year, so that freedom can be a double-edged sword if you're not careful.

You can buy into a franchise in almost every business field, from products to services. What are the pluses of a franchise? To begin with, you are buying into an established concept with a track record.

• A franchise can be a safer bet than a stand-alone business as you are taking advantage of an established brand. The franchiser will also fund and organize advertising for the business.
• Stability can be a major selling point of a franchise, but remember that you are buying into somebody else's business idea and will have to sign a franchise agreement. What you can and cannot do will be limited, and you will have to pay a monthly royalty to the franchiser.
• You will also be obligated to provide only the franchiser's products or services. Before choosing a franchise, you should get to know the people you'll be dealing with, as you will be establishing a long-term partnership with them.

Remember, a stand-alone business or franchise can both be successful and help you meet your professional goals. What matters most is finding the option that will best serve your needs.