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Pros and Cons: Opening a Franchise vs. Starting a New Business

Have you ever considered going into business for yourself? It certainly seems like a monumental task, but does it have to be? Turns out, there are two ways to go about being your own boss: either start your own business from scratch or buy into a franchise structure.


Starting a business from scratch requires an impressive amount of time, energy, innovation, creativity, and moxie. If you’re a highly creative and driven person full of useful ideas and you want to make these ideas a reality, then start it up! Again, it’s not as easy as it sounds, but it’s worth taking the plunge if you truly believe in yourself and your idea. The best advice is to find something that will resonate with your intended client base and market. Creating a business that addresses or solves a problem or offers a unique service is a great place to start.

Once you have a handle of your business, you can choose when—and where—you want to work. Set your own hours; work from home or open a storefront. They sky is the limit! One of the best benefits is that you won’t report to anyone. You have full professional freedom, and your company’s growth potential is pretty much unlimited.

On the downside, startups have a much higher failure rate compared to franchise businesses. Statistics show that 25 percent of startup businesses fail within their first year; 50 percent of the remaining fail within five years; and approximately 30 percent of the remaining last ten years. This is where your concept and grit will be tested. All business owners want to succeed, but keeping a close eye on the market, the industry and how customers react to your business will be key in how you and your business adapt to external factors, which will ultimately define your business’ success or failure.


If starting your own business isn’t likely but you still crave the taste of business ownership, then franchising might be your way in. A franchise is a proven system. All franchisees operate under a common system and they’re only responsible for their day-to-day operations. Also, franchises are well informed about the product line, marketing, how to deal with staff, and other aspects of daily operations. Basically, franchisees receive ongoing support for their businesses which brings them success.

One of the main benefits of franchising is brand recognition. Franchises bring brand awareness from day one. This saves you a ton in marketing and educating prospective customers, because they’re already familiar with your products or services. Many franchises come with a built-in rolodex of customers ready to receive your product or services. In short, through franchising, you are buying a turnkey business that is ready and waiting for you to open the doors.

But there are some downsides to consider, with franchise fees being the most recognized. One-time fees typically cover the initial purchase of your franchise, but you may also incur ongoing fees that need to be paid to a franchisor. Depending on the type of franchise and the industry the franchise serves, there can be a lower barrier to entry making it viable for first time business owners. Commercial cleaning franchises falls into this category. On the other hand, fast food restaurants typically have much higher entrance fees along with fixed costs every month/year for using the brand name.

In the end, whether you choose a start-up or a franchise, expect to dig in and place a certain amount of sweat equity into your new business venture. Business ownership is not for the faint of heart, but it can be extremely rewarding and help create a pathway for your children and grandchildren to get involved at some point down the road.

If you’re in the market to franchise, look into commercial cleaning franchising with Anago Cleaning Systems!