Franchising or Independent Business Ownership? Depends on Your Personality

Though we’ve touched on this point many times before, there are essentially three ways to become your own boss. You can start from scratch, go the franchising route, or buy an existing business—which can offer either an independent or franchising backdrop. We get asked all the time, “Which is the best option for me to choose?” And while we’d sound partial to franchising if we answered that directly, the true answer to this question isn’t really for us to decide.

What it comes down to is your personality type. Let’s look at both options:

Independent Business Ownership

To become an independent business owner, you might have an excellent vision for starting a company that’s all your own—from scratch. Or you might be attracted to purchase an existing business that aligns with your interest and knowledge base. The former is often referred to as a startup and the latter is often referred to as a resale. Either way, once you either purchase the assets of an existing business, or complete the framework of something you launched, you’ll be an independent business owner—free to make the decisions that will guide your success. Your business plan and the way you run your operation are solely done at your discretion.

Franchising

Simply put, franchising means being in business for yourself, but never by yourself. Because by their very design, franchise ownership is meant to include you in the brand’s network of other franchisee owners, as well as being the recipient of all training, support, and ongoing guidance from the concept’s corporate office. The opposite of being an independent owner is approaching business ownership from a collective perspective, where every decision is pre-determined, but carefully crafted in such a way that all you’re really doing is following a proven business model to success. With a franchise, you must abide by the operations manual and recommended business practices. To stray from this plan is to put your own operation, and maybe even others, in jeopardy.

Those are the basic differences you get with independent business owners and franchise owners. Having reviewed these descriptions, do you have a better idea of which ownership role suits your personality? Because that’s often what it comes down to. Let’s dig a little further:

Are you a free spirit? Have you always marched to the beat of your own drum? Do you have a problem with authority or hierarchies? Do you want the freedom, flexibility, and creativity to truly run a business according to your convictions? If so, you’re best suited for independent ownership.

Conversely, do you like structured environments and learn best by doing? Are you a team player that likes to contribute to the overall group’s success? Can you follow directions easily and abide by decisions that aren’t necessarily yours to decide? Do you like being part of a well-oiled team? If so, you’re best suited for franchise ownership.

We’re not here to judge what’s best for you, but you can get a real jump on the discussion if you’re willing to complete a 20-minute survey that FranNet likes to call its Entrepreneur Profile. It’s a series of questions that will assess your values, your motivations, your work style, and your investment level. And your answers will give us a pretty good idea of where you’d fit in the categories above.

Let us know if you’re willing to determine which business ownership opportunity suits you best…and FranNet of DFW and Oklahoma will help you investigate a franchise that perfectly aligns with your lifestyle and financial goals.

Jul 13, 2021