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

Choosing between a startup and a franchise hinges on assessing your passion and expertise. A startup lets you build from your unique idea or industry passion, crafting your vision entirely. A franchise offers a defined brand and business model, ideal if you're drawn to a specific brand and its market presence.

In my opinion, when we decide to start our own business, we create the idea, establish the foundation and build it down up. Building business from scratch enables us to get our hands on all aspects and reduce the risk of making up for mistakes made by others (in case we decided to buy an up and running business).

I faced this very dilemma when I transitioned from law to blockchain entrepreneurship. Building from scratch allowed me to infuse my vision and passion into every detail, creating something unique. However, I also saw the appeal of franchises—established brands with proven models. Ultimately, it boils down to your passion and expertise. If you have a groundbreaking idea and the drive to build, go for a startup. A franchise might be your best bet if you prefer a structured path with brand support. Choose what aligns with your goals and strengths.

When you're weighing the risks between starting your own business from scratch and investing in a franchise, it's all about understanding the uncertainties involved. Starting fresh means you're building everything from the ground up, which can be risky without an established reputation. Franchises, on the other hand, come with a proven business model and support network, which lowers some of those startup uncertainties. However, success isn't guaranteed even with a franchise, and you'll still need to manage fees and follow corporate rules. It's about carefully assessing what fits best with your tolerance for risk and your long-term goals.

Building a business from the ground up is like sculpting a masterpiece—risky but immensely rewarding. You create your brand, your rules, and your legacy. On the flip side, franchises offer a safety net with a proven model and support, but they come with fees and corporate constraints. My advice? Could you evaluate your risk tolerance and passion for innovation versus your need for structure and support? Both paths have their challenges and rewards. You can choose the one that aligns with your vision and strengths. P.S. I have done both, and with experience now, I don't prefer franchises these days. Still, it will depend on the situation and nature of the business.

Deciding between starting your own business or investing in a franchise hinges on the level of control you desire. With a startup, you have the freedom to make all decisions—from branding to product choices—giving you autonomy but also placing all responsibility on your shoulders. On the other hand, a franchise offers a structured environment where rules and procedures are set, which can limit creative control but provide a clear roadmap to follow. It's about weighing these factors to determine which path aligns best with your entrepreneurial vision and goals.

Starting my own business meant I could shape every aspect, from branding to product offerings. This autonomy was exhilarating but came with immense responsibility—every success and failure was mine to own. On the other hand, a franchise offers a structured environment with established rules and processes. While it limits the creative control, it provides a clear roadmap to success. Ultimately, the choice boils down to your desire for control versus the need for a proven system.

Start up cost should never be an obsticale in our way to start our own business. With having the right idea on the table, the expected cost of operation and a clear business model, we should be able to tell when and how our business can reach breakeven point and start making money. And if this is planned and accounted for, then we knew in advance that first few months won't pay for the investment, but later it will!

When you're planning financially for your business, understanding startup costs is key. Starting from scratch typically requires less upfront capital compared to buying into a franchise, which often comes with a substantial initial fee plus ongoing operational expenses. However, launching your own business means investing more in building your brand and attracting loyal customers over time. Franchises offer the advantage of immediate brand recognition, potentially leading to quicker revenue, but you'll need to factor in ongoing royalty payments. It's about balancing upfront investment with long-term financial sustainability based on your business goals.

Reflecting on my journey, I realized that each path offers unique advantages. Building my own business allowed me to innovate freely, pivot when necessary, and scale without constraints. However, it required immense effort to establish brand recognition and trust. On the other hand, franchises provide a ready-made brand and support system but often come with limitations on growth and flexibility. Ultimately, your choice should align with your long-term vision and growth ambitions. Choose the path that best fits your entrepreneurial spirit and future goals.

If we have the new idea and we have done all due deligence and we still have our fears, then a soft format pilot is always recommended. Start testing the business model on a smaller scale then evolve.

Consider your own experience, interests, and ambitions as well. Many first-time founders go on to build their own businesses (or startups) and are fine with big risk, big reward approach. This may not be the case for you where you are. On the other hand, a franchise has a lot of things figured out and can be a much less risky approach to learn the ropes of running a business before you go on to others. Just make sure you understand all the aspects of the legal agreement you get into because many franchisors can be very aggressive on the limits they put on their franchisees.

First, ask yourself why you want to be an entrepreneur. Once your conscience and consciousness - intuition and impulse included - have given you the answer, the rest becomes more manageable. Opt for a franchise if your risk profile is lower. Taking a franchise saves time and money in developing a business model and creating the systems required to grow it. Besides, you can also choose between an owned or managed franchise if you have limited time at your disposal - by choice of other preoccupations. If you have a unique, viable, and scalable idea, you should consider starting your own business. Do not worry too much about the investment required. In my experience, money follows the idea, not vice versa.