If you want to run a bookkeeping business, you have two options. Either you start your own business or take advantage of bookkeeping franchises offered by franchising companies. If you are not sure which option is suitable for you, check out the differences between being a franchisee and an entrepreneur.
No Need for Extensive Business Knowledge
Aspiring entrepreneurs usually need a business background to succeed. They need to create a business plan that will help them define their business operation.
Conversely, franchisees do not need to have in-depth business knowledge and experience. Moreover, they do not need to come up with a business plan. Franchises already have a business plan in place. Additionally, they assist their franchisee in running and promoting the business.
Lower Risk of Failure for Franchisees
On top of the business knowledge requirement, entrepreneurs putting up their own business would have to begin from scratch in terms of establishing their customer base and brand. If they are successful in this process, it’s not an assurance that the startup business will flourish. An article by Forbes, in fact, states that 90 percent of startups fail.
Franchises, on the other hand, make sure to provide a lot of support to franchisees. Moreover, individuals who invest in a franchise will be carrying a renowned brand with them. This makes it easier for franchisees to access an existing customer base.
Access to Capital is Easier
Entrepreneurs starting out face the problem of working with a new business concept. Getting loans or similar financing can be difficult for these people as banks and other financial institutions may not be keen on lending their money to a new business.
Conversely, accessing capital for franchisees is easier. They would know the exact amount they need to invest. Additionally, they can get that amount easily (provided they have good credit standing) by applying for a franchise financing program or a bank loan.
Going for a franchise – as opposed to starting out as an entrepreneur – is much more advantageous. As extensive business knowledge is not required, the risk of failure is low and access to funds is relatively easy. When choosing a franchisor, make sure to check its business concept. A proven concept can help you succeed in your chosen business.