Thousands of small businesses were launched in the UK during the pandemic. Many people want a fresh start after the nightmare of covid-19, particularly in their professional life. Industries across the globe were shattered at the hands of the pandemic – from hospitality to aviation. It’s time to start a new chapter with your own business. But will you go for a franchise or a startup?
What is a startup?
A startup is a company in the initial stages of operations. It’s usually launched by one or more entrepreneurs who feel passionately about their business idea.
The pros and cons of startups
The main problem with startups is that you need a fantastic idea – and sometimes, that idea never comes. Many people start their company as a side hustle while working a full-time job to pay the bills.
Most startups need a business loan or an alternative source of funding to get their feet off the ground. If your startup takes off, you can earn thousands and even millions of pounds. The possibilities are endless.
Running a startup is a brilliant experience for any entrepreneur. You are the boss of your company, and you can make every decision. A lot of responsibility rests on your shoulders, and if the company fails – it’s on you. However, you also get the fulfilment and satisfaction of building something from scratch and watching it grow.
What is a franchise?
A franchise is very different to a startup. The company will offer a license to an individual to market or trade their products. The franchisee only manages their franchise in the company. Larger corporations often have multiple franchises across the country, managed by different people.
The pros and cons of franchises
Franchise owners can jump into a successful company and walk on a path that has already been paved for them. They can have a steady paycheck and enjoy the process of running a company. But they don’t have to find an outstanding idea or build the company from scratch. There are much lower failure rates with a franchise. You can jump into the business at the optimum point and avoid all the risks of the initial stages.
You can follow a business model that has already been tried, tested and improved. The business is already established and earning money. However, you will need to pay an initial licensing fee to become a franchisee. You won’t have as much freedom as you would with a startup. There are certain processes and protocols already in place. You can’t be as innovative or creative with a franchise owned by a larger corporation.
You will receive support with training, business planning, HR, marketing and much more. You have a safety net to fall back on and a network of other franchisees to help you out.
Venture into the business industry this year and try something new.