Many of today's businesses face a serious choice in the very beginning of its activity, which will determine the fate of their business: develop "business from scratch" by trial and error, or go to the beaten track, use ready-made business model? Experts in the field of management and leadership of companies considered, that each species of this business activity has its pluses, and cons, and that affect the final decision every novice businessman in a particular situation.
Independent business is attractive, that he is the offspring of a single entrepreneur, so the businessman have an opportunity to establish a company is on such plan, he developed personally. like a child, this business is born and grows up in front of a businessman, but most importantly - an entrepreneur can do what he likes for a very long time.
The main advantages of a startup:
- Some very friendly staff, where special trust relationship fold.
- Maneuverability and a lack of a framework to work.
- Every entrepreneur acquires invaluable experience in their craft.
- Artist direct interest in the result and work from the heart.
Yet your own business is fraught with a lot of difficulties, lying in wait for newbies:
- As a project manager businessman will solve all the issues with his subordinates.
- Entrepreneur in the short term it is necessary to solve a number of important and urgent issues, having no relevant experience.
- Hard financial framework due to attraction of investments from the private or small start-up capital.
- High risk of ruin aspiring entrepreneurs in a volatile economy. Only ten per cent of newcomers continue to conduct their business.
- Inexperienced entrepreneur can make mistakes, which will disrupt the delicate balance of the young company.
- Every business process has to be debugged, which it takes a lot of time and mental effort.
many entrepreneurs, opening their own business, feel elation and wonder fantastic performance, which is observed in the early stages. Doing things you love - the cherished dream of almost every entrepreneur, but if at first all difficulties can be overcome with enthusiasm, then soon comes fatigue and lack of financial resources, which stands for business collapse. Out of every hundred entrepreneurs to start a business on the market only ten strongest will survive.
Why European entrepreneurs choose a franchise?
More cautious European entrepreneurs financially prefer to work under the supervision of an experienced mentor, ensuring their financial stability of the new case.
The main advantages of the franchise business activity:
- Guarantee stable existence of the young company, especially if it is supported by a major franchisor, has achieved success in the market.
- Financial stability and the exact timing of the expected profit.
- Assistance from the mentor (franchisor) in addressing the main issues, arising from the budding entrepreneur (franchisees), since the franchisor directly interested in the success of new business and increase their income.
- Business pretty quickly pays for itself, that the advance is counted by the franchisor.
- At the very beginning of its activity the entrepreneur can insure yourself from the competition, if you choose a master franchise, which provides the businessman a monopoly in a given territory.
- From the outset, the case is developed using proven and mature business model.
franchise cons:
- The main drawback of this business model, deterrent aspiring entrepreneurs, – higher initial cost in comparison with its own "business from scratch". but, taking into account the profitability of the guarantee and protection from bankruptcy, provided by the franchisor, the price seems quite acceptable.
- For the Russian businessmen the main purpose of their own business is the implementation of their ideas and income, a franchise requires strict adherence to the instructions. For the creative mind there is less opportunity for self-expression, however thus guaranteed financial stability.
- Each franchisor places high demands beginning entrepreneur, as the prospective franchisee will be the official representative of the company, which has already established its name and values its reputation.
In modern conditions it is important to weigh all the options and choose the one, which guarantees the financial stability. The modern market dictates its own rules, which may be prohibitive for newcomers, and confidence in the choice of a robust business model will give strength and optimism.
