Why the Franchise Model is No Longer Most Appealing

Why the Franchise Model is No Longer Most Appealing

Author: Michael Peregrine

In the past, starting your own business was a risky decision for both your career and your financial security. That is why so many people have turned to franchising; because a franchise comes with support, an established brand, a tested product and a marketing team. Owning a franchise for a successful company was more secure than developing everything for yourself and starting out cold. That was, before the internet.

With the online business world growing and gaining speed every minute of every day, starting an internet business has become a much more affordable choice that offers unlimited creative freedom for the true entrepreneur. There are many reasons why an e-commerce business is a much better model than franchising now.

The first and most significant reason is also the most obvious: money. To own a major franchise you need to pay for it. This usually means you need to get a loan because not too many people have hundreds of thousands of dollars just lying around. You also need to hire a staff, train them and purchase all the materials needed to get your place running. When you run an online business there is little to no overhead and it’s something you can operate entirely on your own.

With so many new internet technologies you can even start your own website without any web design knowledge for nothing at all.

One of the other major downfalls to owning a franchise is that you have very little creative freedom to steer your business in a new and different direction. You are usually required to conform to company standards and regulations for everything from dress code to how you speak with a customer. As an internet business owner you can choose to do something you’re passionate about and use your creativity to make it what you want. Having access to worldwide marketplace also makes this possible because you don’t need to do something that’s in demand locally.

As a franchise owner you are not in total control of your business and there are limitations on how much you can earn as set by your head corporation. You can’t raise prices on your own or offer new services without approval, but with an online business there are no limits to what you can do with your venture or how much money you can make.

About the Author:

Michael Peregrine is a business coach and mentor that assists serious entrepreneurs in building a profitable online business with multiple incomes streams. Michael and his team have assisted hundreds of people in generating an executive level income or more in their first year. For more information and to contact Michael, visit: http://www.mikeperegrine.com

Article Source: ArticlesBase.com - Why the Franchise Model is No Longer Most Appealing

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