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Last updated on 2024年6月4日

Here's how you can choose between starting a business from scratch or buying a franchise.

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Deciding whether to start a business from scratch or to buy into a franchise is a significant choice that can shape your entrepreneurial journey. On one hand, starting a business allows for complete creative control and the excitement of bringing a new concept to life. On the other, buying a franchise offers a tried-and-tested business model with established brand recognition. Your decision should align with your personal goals, resources, and willingness to take risks. Understanding the nuances of each option can help you make an informed decision that suits your vision for the future.

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Jason Tee (郑仲竣)

Head of People & Culture - Asia, GrowthOps | 28,000 Followers | Talent & Culture | Prioritizing People's Experience
?? Nicolas THEBAULT

1 Risk Assessment

When considering whether to start your own business or buy a franchise, assessing your risk tolerance is crucial. Starting from scratch can be riskier as you're building a brand and customer base from the ground up, without any guarantees of success. In contrast, a franchise comes with a proven business model and support system which may reduce some risk, but it also requires adherence to the franchisor's rules and may involve significant upfront costs. Weighing these factors against your comfort with uncertainty can guide you towards the right entrepreneurial path.

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?? Nicolas THEBAULT
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Le principal risque quand on entreprend, est de manquer de clients. Le fait d'avoir le soutien d'une enseigne qui a fait ses preuves est un plus. Le produit éprouvé a déjà rencontré sa clientèle, les outils marketing et la publicité soutiennent l'attention des consommateurs, les outils de gestion et le merchandising vous aideront. Attention aux têtes de franchise naissantes sans réelle valeur ajoutée, dont les dirigeants ne sont attirés que par l'argent des franchisés.

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2 Financial Factors

Your financial situation plays a pivotal role in determining the feasibility of starting a business versus buying a franchise . Starting from scratch often requires less initial investment but can incur more costs in the long run as you establish your brand and market presence. Franchises often demand a substantial upfront fee and ongoing royalties, but these costs come with the benefit of an established brand and support in operations. Carefully evaluate your financial resources and the potential return on investment for each option to make a sound decision.

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3 Personal Preferences

Your personal preferences and strengths should guide your choice between starting a business and buying a franchise. If you cherish innovation and independence, starting from scratch allows you to build your vision from the ground up. However, if you prefer structure and support, a franchise offers a predefined framework and operational assistance. Reflect on what you're passionate about and where your skills lie to ensure that your business aligns with your personal ethos and strengths.

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?? Nicolas THEBAULT
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J'ai préféré la liberté d'entreprendre en solo, par l'innovation de rupture. Face à un marché dont vous avez envie de bousculer les codes, autant le faire par vous-même. Dans le secteur de l'accompagnement de carrière, j'ai fait le choix de remettre le collectif, l'effet miroir et les rencontres express et réseaux au centre. Il me fallait le faire par moi-même, avec la couverture des médias et en multipliant les démonstrations et conférences. Le marché était alors (il l'est toujours) orienté vers l'accompagnement individuel, dans des bureaux feutrés sans énergie ??

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4 Market Research

Before making your decision, conduct thorough market research to understand the demand for the product or service you wish to offer. If you're considering starting a business, identify gaps in the market that your unique idea could fill. For those leaning towards a franchise, research the brand's market presence and competition to gauge potential success in your desired location. Understanding market trends and consumer needs is essential for both paths and can significantly impact your business's viability.

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5 Long-Term Goals

Consider your long-term goals when choosing between starting a business or investing in a franchise. If you aspire to create a legacy or build a brand that you can shape and grow over time, starting from scratch might be more fulfilling. Conversely, if your goal is to operate a business with an established model and potentially quicker financial returns, a franchise could be the better option. Aligning your choice with your long-term aspirations will help ensure your entrepreneurial satisfaction and success.

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?? Nicolas THEBAULT
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A travers la franchise, vous pouvez aussi devenir entrepreneur en série. Les propriétaires de multiples restaurants chez Mac Do gagnent des fortunes.. Quand on est seul, la difficulté est de gérer la croissance, de devenir tête de franchise par exemple. Il faut que votre modèle trouve un relai possible chez d'autres personnes. Si tout repose sur votre personnalité, il faut alors être très connu pour que votre prix monte pour accompagner votre croissance en chiffre d'affaires .

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6 Exit Strategy

An often overlooked but important aspect of choosing between starting a business and buying a franchise is the exit strategy. With a business you start, you have more flexibility in deciding when and how to sell or pass on your company. In contrast, a franchise may come with restrictions on resale imposed by the franchisor, which could limit your options. Consider how you plan to eventually step away from the business and ensure that your choice accommodates those plans.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Jason Tee (郑仲竣)

Head of People & Culture - Asia, GrowthOps | 28,000 Followers | Talent & Culture | Prioritizing People's Experience
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Choosing between starting a business from scratch or buying a franchise involves evaluating your risk tolerance, initial investment, and desire for creative control. Additionally, consider the established brand recognition, support systems, and proven business models offered by franchises versus the flexibility and innovation potential of a startup. It's critical to assess market demand, personal expertise, long-term goals, and the level of autonomy you desire. Financial projections and personal commitment levels are also essential considerations.

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Here's how you can choose between starting a business from scratch or buying a franchise.

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2

3

4

5

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1 Risk Assessment

2 Financial Factors

3 Personal Preferences

4 Market Research

5 Long-Term Goals

6 Exit Strategy

7 Here’s what else to consider

Career Counseling

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Here's how you can choose between starting a business from scratch or buying a franchise.

1

2

3

4

5

6

7

1 Risk Assessment

2 Financial Factors

3 Personal Preferences

4 Market Research

5 Long-Term Goals

6 Exit Strategy

7 Here’s what else to consider

Career Counseling

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