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Startup Freedom or Franchise Security – What’s the Right Path for You?

These days, everybody wants to start a business, everyone wants to dream big and fulfill them. Usually, they have 2 options, adopt a franchise or establish a startup. Both have their pros and cons. As the title suggests, franchise gives you security or success as it is an already established business & startups lets you have the freedom to plan strategy etc. to grow your business. In the blog we will discuss both the business types.

FRANCHISE

Franchise is a business-model in which you start a business by adopting the brand name, working methods & identity of an already established organization. One has to adopt the rules & methods of the organization so that customers get some experience in every outlet. That means, you work on your own business but with an established name & system, which increases the chances of success.

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BENEFITS OF A FRANCHISE

The franchise model has many benefits that make it a safe option.

You get an already established brand which is known & trusted by people. This makes initial sales easy.

Franchise is an already planned & executed business. The franchiser gives you SOP, training manuals & supply chains, due to which you don’t have to do the research & planning.
The Company also supports you in local & national marketing, which means one doesn’t have to invest in promotions.
According to a study, the status of success in franchises is much more than those of start-ups , which makes it reliable for new business owners.

CHALLENGES IN FRANCHISE

Getting a franchise is beneficial best it also has many disadvantages as well.

Franchise requires a hefty initial investment. This is because the company charges you a fee, to give you the franchise. This could vary from 5 lacs to 50 lacs.

The owner does not get full profit as he has to give 3% to 10% royalty fees to the brands.

This model doesn’t give you freedom to make decisions. You ain’t even allowed to launch a new product or service according to your wish.
Location isn’t decided by you. The company decides where you can open the franchise & most areas don’t get permitted.

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STARTUP

Startup means establishing a business which is based on a new and innovative idea. In this, you launch a new product or service, or solve a problem. You also present it in a way which is different and attractive. In a startup you have to figure out the brand name, product design, marketing strategy and operation model. This model’s success is totally based on your imagination, homework & decisions & hence is risky.

BENEFITS OF STARTUP

A startup has many benefits which makes it attractive for creative & innovative people.

The business model gives you the freedom to choose the idea, design the logo, decide the product, and make strategies for business & marketing.
Financial decisions are in your hands. You don’t have to give someone royalty. You can decide the price & keep the profits.
If your business works & grows, you can make your own brand value & start forming a franchise.
In startup business, one has to learn about finance, marketing, management & team building etc,. which not help today but are beneficial for the future

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DISADVANTAGES OF STARTUPS

Building a startup is advantageous but also risky. It has many disadvantages

startups are prone to failures as there is lack of funds, knowledge of the market & a strong team.

Marketing needs a hefty investment as nobody knows the company in the beginning.
Getting guidance is very important but equally tough. One has to manage operations, marketing and technical difficulties themselves.
The investment risk is only faced by you. If the business fails, the money ,time and efforts are wasted and that too only out of your pocket.

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CONCLUSION

Franchise & startups are both roads to success. It depends on you, whether you want risk or freedom. It also depends on your experience & funding. If you don’t take risks & are fine with working on an already built system, then franchise is the best option for you. Choose a startup if you want to do something different , build your own identity & not fear challenges.

If you’re also struggling with low sales in your business, this article can be extremely helpful for you. Moreover, if you’re facing any kind of challenge in your business and are looking for expert guidance, click on the link to the Leadership Funnel Program and get in touch with us now.

5 Important Steps Entrepreneurs must take for the Perfect Product Launch!

So you have a unique idea for a new product that will magically resolve all the challenges that customers in a particular segment are facing. You create a killer product that may bring a revolution to the world. Now you want the entire world to go crazy to purchase it (think about people standing in queue to buy an iPhone).

But none of that happens and you get up with sweat beads all over your forehead. All the hard work and efforts that you have put in to create a product now appear pointless. Scary, isn`t it?

It is extremely easy to get ahead of yourself when trying to create a new product. Envisioning all the sales and profits, recognition, and success that will emerge after your product launch can often take us away from reality. But just like any other business initiative, a product launch also requires time and careful planning.

And, launching your product in the market without having your ducks in a row is a recipe for disaster. Thus, if you have created a brilliant product after investing your hard-earned money and efforts, here are 5 steps every entrepreneur should take before releasing a new product:

1. Be Strategic in Defining your Target Audience

Whether you are creating the new iPhone or a food joint, it is important to find and learn from your core audience. Establish your base and build their confidence in you.

Learn from your competitors as there are no original ideas, only repurposed ones. As you prepare for your product launch, research your competitors. Take from their good, learn from their mistakes and enhance where you think is a scope for improvement.

2. Go All out When It comes to Publicity

Obscurity kills businesses. If you do not shine like a sun when it comes to publicity, you won`t get the attention that is needed to be successful. Before launching your new product, ask yourself two things-

a). How far will I go to get attention?

b). How frequent will I be in my attempts?

If you will not go overboard when it comes to marketing your product launch, you will not get your customer`s attention. Also, having a thorough understanding of the challenge that your product or service is solving is imperative to business growth. It is very surprising to see how it is not thoroughly thought through.

3. Be Clear & Concise about your Target Audience

If someone asks you, “Who is your target audience?” you should have a concise answer. Otherwise, it’s a red signal! Being an entrepreneur is not an easy deal and thus, it is suggested that you should research well about your target audience.

Apart from knowing your audience, you must be well aware of your product`s value. Take testimonials from your client who found success using your product, which can be beneficial for making improvements.

4. Trace & Understand the Buyer`s Journey

What is the foundation of all the marketing and sales activities? The Buyer`s Journey! The process that revolves around the buying process makes the basis of all the activities related to marketing. Thus, it is essential to understand the customer`s pain points, from where do they get their information to, and who influences the purchase. Generally, there are specific events that may trigger a purchase.

5. Focus on Major Media Outlets

Attention is the currency of the internet. An average person consumes an enormous amount of information daily. To hold someone`s attention, cut through the noise. Develop the right media strategy that is suitable for your product launch. Pitch yourself as an expert and focus on high-profile media outlets. However, your pitch must have a sensational hook with actionable advice.

Also, do not just use the traditional medium of advertisements. Use the power of social media and create hype to engage customers. Create strong brand guidelines and ensure that you got the powerful one. Use social media platforms to create a buzz amongst the target consumers.

Another brilliant way to create a buzz around your product before its launch is to reward your customers. Offer discounts for preorders, first-time users, and or something else that can entice users to buy upon launch.

Launching a new product or service is not easy! There are lots of steps involved that can leave a great impact on a product launch. These steps can make or mar your product in the niche market. Know what is best for your product or service with our Problem Solving Courses. To know more about it, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads