This is a question I believe a lot of people are asking themselves these days in America. There are so many people out there looking for a plan B, and not a lot of people really know what would be the best option for themselves. I am writing this article because I have a lot of experience in both scenarious.. I am the owner of multiple locations of two different franchises, and have served as a franchise advisory board member and advertising advisory board member for Palm Beach Tan, the largest tanning franchise in the country. I am also building a multi-level marketing business (or network marketing business), and my team is spread throughout the country, with people in almost every state in the U.S. I will argue the pros and cons of both options, AND I will let you in on a few secrets I have leaned the hard way that are absolutely critical to being successful in both situations.
Lets start with buying into a Franchise.
Here are some advantages:
1. Proven Business Model: There are many benefits to buying into a franchise, but the most popular is theoretically being able to open a business with a proven business model. The statistics show that about 80% of businesses fail within their first few years, but the chances of a franchise business failing is closer to 20%. The franchise percentages are skewed quite a bit though, because a franchise is much easier to sell, so what ends up happening is a failing franchise might go through two or three owners before it actually shuts own. The existing owner always has good excuses why it is failing and the new owner always thinks he or she is the savior and will be able to turn things around.. Sometimes the franchisor will take over the location to delay the inevitable because the last thing that want on their Franchise Advisory Ciurcular is store closures.. (they are generally in the business of selling franchises)