Women Business Owners (The Franchise vs The Start-Up)
The number of women owning their own businesses is on the rise. Once relegated to the roles of caretakers and secretaries, more women are stepping up and becoming entrepreneurs. “In the past 20 years, the number of women-owned firms in the US increased by 114%.”. Women are more than just “excellent caretakers” or “great assistants” but we are also savvy business-minded individuals. Interestingly enough, an investment that women have been considering as a potential business opportunity is franchising, more specifically coffee franchising.
Why would a franchise be appealing to women in business instead of a start-up?
“Women tend to enter and own a less expensive franchise system. The reasons are associated with a woman's nature to take less financial risks and to start small to grow big.”. This is indeed the kind of business approach that is ideal for purchasing a franchise.
A franchise is usually a lower financial investment than a start-up. It has often been proven to be the most secure, cost-effective, and viable option.
Here, are some of the benefits of purchasing a franchise:
Brand recognition: This can cut years of struggling to build a steady customer base. Customers are the bread and butter of any business and name recognition often brings customers in the door much more quickly than a new business that no one has ever heard of.
On-going support: Franchise companies have staff dedicated to providing you with ongoing assistance. So you won’t be alone when building and running your business, which is a great stress reliever if this your first business.
Training: Franchise companies offer training programs designed to teach you how to successfully operate the business.
Marketing assistance: This is one of the most important aspects of any business. Franchising companies offer marketing assistance that provides the tools and strategies for attracting and retaining customers.
As much as I love having my own start-up company the work behind it is no easy task. All of the fringe benefits that a franchise offers is something that you will have to do on your own. Unfortunately, the success rate is lower than that of a franchise. Statistically, 25 percent of start-up businesses are predicted to fail within the first year, 50 percent of the remaining fail within five years.
A start-up has a 70 to 80 percent chance of not surviving the first one to two years while franchisees have an 80 percent chance of surviving. But hey, the higher the risk the greater the return, right?!?. I am personally taking a chance on my start-up. However, I intend to succeed and beat the odds. Positivity and a clear focus on your goals and objective can defy any statistic, at least in my opinion.
Source: The Balance Small Business
Here, are the major advantages of having a start-up:
Firstly, with a start-up, I have the freedom to work anywhere and at any time. Since my life is currently split between two countries, this advantage works well in my favor. At any moment, I may have to leave my current base (Colombia) and go to my home country (United States) and I can take my work with me. AMAZING! Secondly, I don’t need to report to other people. I AM MY OWN BOSS! Franchises are restrictive and in order to protect your franchise license, you will need to abide by certain rules. BUMMER! And lastly, in terms of growth opportunities, franchise businesses can only allow you to grow to a certain point but with a start-up, the sky’s the limit! Again, remember it is your own business and no one else’s!
But wait, why coffee franchising?
Coffee franchises aren't just about selling coffee. It is also an opportunity to sell other products such as pastries, sandwiches, merchandise and etc. Similar to a bodega. In addition, to upselling opportunities, coffee franchises are relatively simple to manage due to simple menus and items. It also provides a change of scenery for those that work from home. You can escape to your local coffee shop to do work, to conduct meetings, to escape the office, or to catch up with old and new friends. This trend most likely will never end.
Your future business investment depends on your risk appetite and your view of business ownership. The key fact is that the trend of female business owners is growing and I am happy to be apart of this trend.