Should You Open a Franchise by Yourself or with a Partner?
Many people dream of owning their own business and being their own boss. Owning a franchise can be a lucrative and rewarding experience. Working with a company that has an established product and a proven model for success can make your business more likely to succeed than it might be if you were to start from scratch.
The Costs of Starting a Franchise
Starting a franchise requires a significant investment of money and time. The upfront cost to start a franchise can vary significantly depending on the nature of the business and the location where you want to open it. Some people invest their life savings or borrow from retirement accounts to raise the funds to start a franchise.
In addition to the financial cost, there is also a lot of time required to get a new franchise off the ground. You can expect to work long days and many nights, as well as weekends and possibly holidays. You may not have as much time as you would like to spend with family and friends or relaxing and enjoying your hobbies.
Should You Work with a Partner?
Because of the amount of money and time required to start franchise, you may want to consider working with a partner. This can be a family member or a friend you have known for years, or it can be a financial investor you are working with solely on a business venture. Before you decide to take on a partner or to start a franchise alone, you need to carefully consider the pros and cons of each option.
Pros and Cons of Opening Your Own Franchise
If you start a franchise alone, you will have the freedom and satisfaction of being your own boss and making all of the decisions yourself, except when you are required to follow the parent company’s guidelines and rules. You will be able to control all the day-to-day operations of the business. This freedom can be liberating for some people, but it can be too much of a burden for others. If you are making all of the decisions yourself, that means you will need to do all of the necessary research and consider all of the options yourself. If you make the wrong decisions, you will have no one but yourself to blame.
If you open a franchise on your own, you will be responsible for its success or failure. If the business is successful, you will reap all of the financial rewards and will not need to share your profits with another investor. If you make the wrong decisions, you will suffer financially.
Benefits and Drawbacks of Working with a Friend or Family Member
Another option many people choose is to go into business with a family member or a friend as a partner. On the one hand, two heads are better than one. Working with a partner can be a good idea since you will have someone with whom you can discuss ideas and share the responsibility of making decisions. The other person may have a perspective or idea that you had not considered.
You will also have someone else to share the financial burden of starting the business. You will not need to supply as much capital up front or borrow as much money as you would have to if you were to go into business by yourself.
Working with a family member or friend can have its disadvantages. You will need to make sure you can communicate effectively with the other person. A good personal relationship does not necessarily guarantee a good working relationship. You will need to make sure you set up appropriate boundaries so personal issues do not affect the running of the business. You won’t always get your way, and you may need to make compromises for the sake of the business.
Advantages and Disadvantages of Working with a Silent Investor
A third option is to go into business with a silent investor. That person can provide financial support and help you make decisions. You will have more control working with a silent investor than you would have if you went into business with a full partner. If you work with a silent investor, you will shoulder the bulk of the responsibility for decision-making and will not have as much support as you would have with a full partner. If the business is successful, you will need to share your profits.
Consider Opening a Between Rounds Franchise
If you want to open a franchise, you need to carefully consider all of your options and decide whether you should go into business by yourself or with a partner. You need to think about your current financial situation, your personality, your work ethic, and how much time you are prepared to dedicate to starting your franchise.
Between Rounds is a bagel shop chain with locations all over Connecticut. We offer delicious products and have a successful business model that has served our franchisees well. If you are thinking about starting your own franchise, opening a Between Rounds bagel shop can give you the opportunity to be your own boss and to be financially successful. Contact us today to learn more about franchise opportunities.