Choosing to invest in the auto detailing business is already a winning option. The continuous rise of the demand for automobile related services places your investment almost near success. The question you need to answer now is: which business option would you choose? Here are the factors to consider for you to effectively choose between owning a franchise vs own business.
Franchise vs Own Business: Points to Consider
How Much You Know
Your knowledge will determine your service level. You’ll need to know the basic and add-on services involved in the auto detailing industry.
Auto detailing can get personal for customers. Most people would have demands and detailed instructions on how they want their cars to be handled. Being the less knowledgeable one can be a disadvantage. It could potentially harm your reputation. This is detrimental to a starting business owner.
As a franchisee, you will not have to stress about this. Almost all franchisors offer an already proven franchise training program for new and future employees.
How Much Growth You Want
This is something all business owners, franchise or not, must keep in mind. How big is your goal? Are you equipped to achieve it? Starting a franchise is a much safer way to succeed in the auto detailing industry. The advantages outnumber the disadvantages. It is all a matter of following certain guidelines set by the brand. Now, if you were to start your own business, the sky is the limit when it comes to possibilities. A lot riskier, indeed! But if you have that business strategy and success chart mapped out in your head within your own timeline, you wouldn’t want any franchisor to meddle with that, would you?
How Much Experience You Have
How much experience do you have as an entrepreneur? Most specifically in the auto detailing industry?
Starting your own business means complete independence. It also means you will be handling everything on your own. Meanwhile, being a franchisee means that you will have a handy automotive franchise support team. Ask yourself, franchise vs own business: which one would work to my advantage?
The auto detailing industry, although an in-demand type of business, will still be seasonal based on your geographical area. If you want to start your own business, you need to do a thorough study of the location you plan to put up your business in.
Being a franchisee, you ought to do the same, but chances are there are already feasibility studies and reports that your franchisor will give you. Furthermore, if you want more than just one auto detailing shop, you can even talk about area development with your business partners.
One of the challenges that franchisees go through is maintaining the brand. Auto detailing franchises take pride in their own individual ways of showing care for automobiles. A franchise brand carries a signature that the owners have already established. You would have to keep protecting this trademark.
Before jumping into the franchise business, consider whether you want to maintain this brand signature or do you want to start your own legacy in the auto detailing industry. Is there something new you want to bring to the table? If so, franchising may not be for you.
Does the whole process of starting your business from scratch get you excited? Your to-do list can be a mile long. As long as you take pleasure in ticking off all the boxes, adding new ones, or editing current points, you should be fine on your own. However, if you are more comfortable with a shorter to-do list and prefer to get some franchise help along the way, then you are definitely a franchisee material.
Your Financial Capability
There are two things to consider:
- The First Drop
This refers to the amount of money you will need initially. Paying for a trademark will be more expensive. A financial empowerment group explains that the most common initial franchise costs alone are between $20,000 to $50,000.
- The Long Run
These are the costs you need to get the business maintained. Later on, as your business grows, the tables will turn. Although a higher franchise investment is required upfront, it costs you a little less to have it maintained. What is the reason behind this fact in the franchise vs own business dilemma? Because the brand is established, marketing is very minimal. Meanwhile, your own business will most probably require more marketing. A startup auto detailing business will also demand higher training funds for your employees and more experimentation with auto detailing products. As your business grows, the cost of keeping up also grows.
As mentioned, little marketing effort is required with an established franchise brand. In this criteria in franchise vs own business, the franchise wins, hands down!
Trial and Error
As a new auto detailer, you will most likely go through the trial and error process. It’s learning as you go.
On the opposite side, all of this has been figured out with a franchise. You can just follow a guideline and be on your way.
Your Initial Plan
When you started daydreaming about your auto detailing shop, did you envision the name you’d put up on your signage? Some businessmen start with a strategy in mind and want to have this all carried out on their own. Others are more inclined to carry out a trusted business strategy. When in doubt, go back to your initial plan. At the end of the day, you will need to answer the question, franchise vs own business: which one will be a best match for me?
If you need more assistance in getting to know more about a franchise brand that can help you create a successful auto detailing business, schedule a consultation with DetailXPerts!