Independent, Franchisee, or Association with a Large Company

Determine whether you want to be completely independent, be a franchisee, or associate yourself with a large company. Each option is legitimate. Each option has its advantages and disadvantages:

If you are completely independent you will have to come up with your own idea, establish your own business system, build your own team and create your own delivery method and marketing message. You will have no large company to protect you from other large businesses. On the other hand, you keep all your profits rather than sharing them. If this is the route you decide, go carefully through each step on this website.

As a franchisee, you license an already successful business model. You pay what is usually a substantial license fee and normally will pay a percentage of your revenues on an ongoing basis. Often, you also purchase supplies or inventory from the franchiser. In return, you are taught how to establish and run your business. Your business plan and marketing plan will be provided to you and you will have to evaluate these plans to see whether the opportunity is right for you. You will not have the flexibility you would have if you were completely independent. However, you often have territorial protection and extensive help from the franchiser. Go through the steps in this website. You may not have to do each of the steps but it is important for you to know what they are so you can evaluate what the potential franchiser presents to you.

If you are associated with a large company, you are somewhere in between being completely independent and being a franchisee. You have the advantage of benefiting from a large corporation’s research and development effort; you may have the advantage of products or services that are unique and patented; you will probably have more flexibility than a franchisee. Most of the work, such as research and development, patent protection, legal requirements, and shipping and billing are done for you. You are also taught how to do what the company cannot do for itself. Initial capital requirements are normally very small and the potential is very large. If this is the route you choose, go through Steps 1-4 as well as Step 8, Business Organization, and Step 11 and 12, Accounting and Tax Help and Website Help. The rest is done for you.

To see how I've answered the question--independent, franchisee, or associated with a large company--take a look at the far right column of the Business Ideas Evaluation Matrix. You can follow the link at the bottom of the Matrix to see my business model or read about the four business principles I rely on in my business and then watch a video about my business model.

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