Maybe you’re tired of working for someone else or you just want more flexibility in your life, whatever the reason may be, you’ve finally decided to take charge of your career and branch out on your own. While it comes with a great sense of freedom, achievement and excitement, we understand that taking the leap from an employee to an employer can be daunting. You’ll be your own boss and every decision can make or break your company.

One of the very first decisions that you will have to make is the type of business you want to start. Whether you want to do it from scratch or join a franchise model.

We at TaxAssist Accountants talk to people every day who want to start their own businesses. Some decide to stay back and join our accounting franchise system, some decide to start their own practice from scratch and some just conclude that entrepreneurship is not their cup of tea.

While the franchise model is known to have a higher success rate because of a proven business model and franchise support system, there is no guarantee for success. In the end what you decide to do will be your personal choice based on your goals and objectives. However, it’s worthwhile weighing all our options and then deciding what’s best for you.

Franchising Vs Startup:

Before you start any business, there is a list of considerations. Where will I get my finances from? Where will I get my clients from? How will I build my website and then maintain it? How will I do my marketing? Where will my business be located? Should I partner with someone or start alone?

In a start-up you will have to decide what to sell, the best way to market it, if you need to hire a team, your business model and much more. You basically will have to depend on your business acumen to make major decisions in all functions of the business.

Franchising comes with a proven and successful business model. For the franchise fee that you pay, you get Training, Marketing support, Lead generation, Technical and Business advice on a regular and consistent basis. You do not get to choose the products or services you sell but you get security, stability and the backing of an established brand name. You can focus on providing the best products and services, while the franchise system takes care of everything else.

Questions to ask yourself:

Here are a few questions to help you decide. Make sure you are true to yourself when you answer these questions.

  1. How do you handle risk?
    If you have come this far on your decision about starting your own business, you’re already a risk taker. However, you need to consider the degree of risk you are willing to take. For entrepreneurs who are comparatively risk-averse or want to reduce the level of uncertainty, the franchise model is the right fit. 
     
  2. Have you got the necessary skills for self-employment?
    Starting a business from scratch will need you to have  business acumen, updated knowledge and research on the current business environment, communication skills, high motivation and energy. Your work hours may go beyond what it is currently in your employment. Do you want to hire a team to support you or join a franchise system and use their proven tactics, training and support to run an established business? It doesn’t end here. There is a long list of considerations that you will need to take care of if you decide to start your business from scratch.
     
  3. How are you placed financially?
    Starting a new company, no matter if it’s a franchise or your own startup, is going to require investment, both in time and money. Depending on the type of business you’re looking to start, costs can vary wildly from a few thousand to a few million. Every business startup will have different expenses and capital expenditures.

    The majority of franchisors charge their franchisees a monthly or quarterly management service fee in exchange for permission to use their brand name and business model. There are also marketing and advertising fees, in exchange for which franchisees benefit from in-depth market research and proven marketing plans. These established assets set franchisees up for success from the start, helping them avoid the otherwise grueling and expensive trial-and-error process that independent business owners must contend with as they figure out the market and get to know their customer base.

    When you opt to buy a franchise, all of the decisions have already been researched, tested and determined — to ensure your company’s success. When you buy a franchise, you are buying into a tested and proven system.

    One of the main reasons new businesses fail is because they cannot maintain a healthy cashflow. Making sure you have solid financial and marketing business plans, going into your venture well-funded and ensuring you stay on top of your finances are all key if you want to make a success of your venture.

    Here at TaxAssist we work closely with our franchisees throughout the business planning process to establish the right level of investment for each individual. As an established brand, franchisees benefit from our strong working relationships with the major banks. 
     
  4. How sound are you with technology?
    The business environment is going through massive technological shifts. If you plan to run your own firm, you will have to decide the right software, protect your data and implement automation. In a franchise system, all the the research has been done for you. The software, security gateways and latest technology is already in place. You will also be trained to make the best use of all the technology available to you in order to best serve your clients.

    At TaxAssist, we support our franchisees with the best-in-class accounting and tax software that is available in the market. This means our franchisees can offer an innovative, technology-led service, which can attract, cater for and retain every type of client.

 

If you have come till the end of this article and answered all the above questions truthfully, you’re one step closer to deciding the future course of action in your journey of self-employment. Do your research, talk to more people, ask for help. You’ll soon be on the right path to “owning your own business”.

TaxAssist Accountants will also be at Booth # 302, at The Franchise Expo being held at The International Centre, Toronto on the 11th and 12th of September. Meet our expert team there. They will be happy to answer all your questions on ‘Owning your own business’ and why TaxAssist should be your preferred choice.

Contact us on tel:1-888-200-5469 or [email protected] if you have any questions.

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