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Buying A Franchise V Starting A Business

Starting Your Own Business Vs Buying A Franchise

Entrepreneurs are often at a crossroads when entering the business arena: start an independent company from the ground up, or enter the franchise domain. Each route has unique advantages and considerations that merit thorough evaluation for anyone keen to launch into the business sphere.

Point 1: Industry data indicates that around 20% of new startups do not surpass their first year.

Point 2: Banks tend to favour established brands for their perceived stability.

Launching an Independent Business

Embarking on an independent business venture is an exercise of autonomy and faith in one’s vision. Entrepreneurs can relish complete control over their business strategy and daily operations, allowing them to tailor their services or products directly to their vision and the market’s needs.

Yet, such freedom comes with considerable responsibility. Entrepreneurs must navigate every aspect of the business without the support of a recognised brand or established business model, which can make initial customer acquisition and partner relations more challenging.

Starting a business independently typically requires significant initial capital without the support of a franchisor. Marketing and brand recognition efforts, crucial for gaining traction, often demand substantial investment.

Given these challenges, it is unsurprising to find a higher failure rate among new businesses, often due to undercapitalisation, marketing missteps, or lack of essential business management experience, according to the United States Bureau of Labor Statistics and the Small Business Administration.

Choosing a Franchise Path

On the franchise front, entrepreneurs can capitalise on the established market presence of a known brand. This path often includes a predefined business model, simplifying operations for entrepreneurs needing more experience.

Franchisees may face reduced initial marketing and operational costs, as these are typically part of the franchisor’s support system. Additionally, established relationships with suppliers and partners facilitated by the franchisor can benefit business growth.

However, joining a franchise system also involves adherence to the franchisor’s guidelines and may involve ongoing fees, such as royalties based on revenue.

When seeking financial support, entrepreneurs may find that banks are more receptive to funding a franchise due to the proven business model and existing brand recognition.

Starting an independent business and opening a franchise come with distinct paths and potential outcomes. When making this critical decision, entrepreneurs should consider their personal goals, risk tolerance, and commitment level. Careful deliberation and market research are paramount in choosing the path that aligns with an individual’s business aspirations and resources.

Mail Boxes Etc. provides a franchising opportunity that presents a business model which has been established and tested across more than 40 countries globally. The model is designed to work in concert with local partners, enhancing the ability to deliver services tailored to meet the diverse needs of customers.

The suite of logistics and marketing services offered by Mail Boxes Etc. is structured to support entrepreneurs in concentrating on growing their business’s core areas. This is facilitated through access to expert advice and a comprehensive network of seasoned professionals within the franchise system.

Open a new MBE Center

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 Fortidia - a registered trademark 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.