One of the most important decisions an aspiring entrepreneur can face is the choice between starting a company from scratch or opening a franchise business. Both options present a number of benefits and challenges, and fully understanding these aspects can make all the difference in helping you launch your business.
From simplified business management to operational freedom, from contractual constraints to the risks related to opening a new business, let us dive into the analysis of these two entrepreneurial opportunities and discover the pros and cons of both solutions together.Opening your own business: pros and cons

Opening your own business: pros and cons

The entrepreneur who decides to start a company from scratch begins a growth path characterized by deep confidence in his business idea and in the ability to position himself in a constantly evolving market. The main advantages deriving from opening your own company include greater decision-making autonomy: entrepreneurs have full control of every aspect of their business, from the strategic vision to the management of all daily operational decisions. This independence allows you to customize the commercial offer according to your entrepreneurial vision while ensuring an agile and timely response to the changing dynamics of the reference market.

About one in five start-ups fails in their first year of operation.

Banks positively evaluate the presence of an already consolidated brand.

However, with total independence in managing a company, come many responsibilities: entrepreneurs must face every challenge alone, be it financial, operational or strategic. The absence of a pre-established model can also make the process of finding and retaining new customers and establishing lasting relationships with partners and suppliers very difficult.Whoever chooses to open their own business, therefore, unlike the franchisee, will have to bear all the initial investments, often considerable, required for its opening.

Furthermore, the absence of an already established brand makes it necessary to adopt huge investments in marketing and communication campaigns, which are essential to make your brand identity recognizable and convey trust to potential customers.The high failure rate of new companies is therefore not surprising: according to a study by the United States Bureau of Labor Statistics, approximately one in five start-ups fails in the first year of activity. Furthermore, according to the Small Business Administration, the main reasons for the failure of a new business include: lack of money, the adoption of ineffective marketing strategies and the absence of the necessary know-how to develop your business.

Opening a franchise business

However, if you opt for a franchising business, you will be able to promote the new company by exploiting the strength of an already established brand on the market. The limitation of decision-making autonomy is largely compensated by the possibility of managing the business in an easier way: the entrepreneur will be able to concentrate on business development even without having decades of experience in the sector.In exchange for an entry fee and a possible percentage of turnover, the franchisee will be able to benefit from a considerable reduction in business risk: an example is the reduction in costs to be borne for starting advertising campaigns and purchasing equipment and furnishings, which will be absorbed by the franchisor.

Furthermore, the entrepreneur who decides to start a franchising business will be able to take advantage of the commercial agreements already started by the brand with partners and suppliers, which will give impetus to the growth of the business. This business model also represents the ideal solution for those who intend to expand into new international markets by reducing initial investments to a minimum: the brand generally supplies the skills and collaboration with local partners necessary to establish you in a specific country while reducing risks to a minimum.Finally, those who choose this solution will be able to communicate with credit institutions with more credibility, obtaining the funds necessary to start the business more easily: banks positively evaluate the presence of an already consolidated lower business risk that uses a proven operating model.

Franchising Mail Boxes Etc. offers entrepreneurs a safe and proven business model in over 40 countries around the world. Collaboration with local partners allows us to offer a personalized service that meets customer needs.Mail Boxes Etc. logistics and marketing services help entrepreneurs to focus exclusively on the development of their business, being able to take advantage of the qualified consultancy of a large network of specialized professionals.

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Mail Boxes Etc./MBE Centers are operated by independent operators as franchisees, who operate under a franchise agreement under the brand name of MBE. Through its franchise network Mail Boxes Etc. provides support services for businesses and individuals. Logistics and shipping services represent the main services of MBE – enabled by MBE through contractual agreements concluded for the benefit of its franchisees with the main domestic and international express couriers - and other graphics and printing services - provided either directly or on the basis of agreements with large printing centers. The promotion of services for business and private customers is carried out in the framework of the business activity of each MBE franchise partner within and outside of the MBE Centers ("farming"). Each franchise partner is contractually obligated to perform such activities. Mail Boxes Etc. and MBE are registered trademarks used with permission of MBE Worldwide S.p.A. (All Rights Reserved). The services offered by the individual MBE Centers can vary depending upon the location. The material available on this Internet site, the information contained herein and any other relevant related data may not in any manner be copied, distributed, changed, republished, reproduced, downloaded or forwarded to third parties, without the expressed prior written authorization of Sistema Italia 93 S.r.l. We accept no responsibility with regard to the unauthorized use of the material available on this Internet site, the information and/or the data contained herein.
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