Millions of people are exiting the workforce, even a full year later after the start of the pandemic, and many aren't sure of their next steps. Do they want to start a business? Is their side-hustle ready for the spotlight? Do they need a new corporate job that includes more of the benefits they're looking for? 

If you're one of the millions deciding between starting your own business from scratch and considering franchise ownership, it can be challenging to weigh the pros and cons and feel confident in your decision. 

One of the things that many people enjoy about a small business is that everything is entirely theirs. But, this means you are solely responsible for every aspect of the company - operations, human resources, marketing, finance, and more. 

A startup often takes a lot more work than a franchise, too, because the franchise supports most of what you want to accomplish, although both options require you to have your best business insight on deck at all times.

Financially speaking, although most people can get a startup off the ground on a shoestring budget, a franchise endeavor requires more upfront cash and investment.

Financial constraints can be a challenge for many in this scenario, but there are other factors you should consider as well. 

Which best suits your personality?

Your personality, specifically your entrepreneur skills and business personality, will have a lot of sway in deciding whether starting a franchise is better for you - check Franchise Direct for a great range of options. 

If you already have strong business acumen and have previously created a business, you might enjoy the startup adventure and the chance to perfect your skills. You also have complete freedom in how you market your business, how you choose your target audience, and the power to pivot and change strategies at any time. 

For those new to the idea of business ownership, leaving another industry, or generally interested in learning how to own a business, franchise ownership is a natural place to begin. 

This type of ownership can be great if you like the idea of stepping into a well-known company, having coordinated training, and ultimately running a business but with oversight and support. 

How does your financial situation match up? 

Business startups and franchises are both significant financial investments, although each has a different type of risk involved. 

Startups have the flexibility of smaller upfront investments and starting slow where franchises are typically a set fee based on industry, location, and myriad other factors. 

Most franchise fees are reasonable given the number of resources and training provided. However, it is essential to remember that franchises require payment of ongoing royalties and extensive contracts that may involve legal fees to understand and execute. 

Final thoughts

If you're still unsure about which option is best for you, talk with an attorney or financial advisor and weigh the risks of both options. Either journey is bound to be filled with excitement, learning, and adventure! 

Are you working with a smaller budget? Check this out: Low-Risk Investments That Could Help Finance Your Small Business Start-Up.

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