Provas Global

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Franchise vs Own Business

There are many advantages and dis-advantages with both but the main ones are.

a. Franchise:
+ You will get Clients easily which is the main backbone for this business.
- Initial Setup cost will be high; in addition recurring cost. Each month you will have to pay a fixed monthly percentage for the Franchise.
- You don't have your own identity.

b. Own Brand:
+ Setup cost is less; whatever be the profit may be 1 Rupee or 10000 Rs it is going to be yours.
+ Over a period of time you can build your own brand name.
- Getting clients initially is going to be hard.

What I suggest: Own Business; Why?

a) From a Client's point of view -
" ... I don't bother whether I get a candidate from XYZ Consultancy or ABC Consultancy; all I need is a candidate and I am happy with whichever consultancy that provides me with a candidate .... "

" ... I am going to pay the same amount of money to XYZ Consultancy or ABC Consultancy irrespective of their business backgrounds ..."

So, franchise does not give any edge for me in this case.

b) Set up Cost -
Initial set up cost must be kept to a minimum. If I get a pen for Rs.10 which is of high quality; I have another pen for Rs.2 which is low quality and another pen which is of medium quality and priced at Rs.5 then I must go for Rs.5 pen in business.

Tomorrow when my business grows and when I make good profits I will simply give this pen to my new joinee as a sign of encouragement "... see, I am giving you my pen ... you must come up in life like me .." and I will buy the 10 Rs pen, this is business.

Own business gives me the chance to control my expenses and to select my own expenses.

c) Getting Clients -
I know this is a negative point for me; but how to make it positive?
I am going to meet a client; I will discuss about the consulting business; I will request him to give me an opportunity ... what the client will say " ...see, we already have a lot of consultancies working for us; we don't find any reason why we must come to you? ... so sorry ..." that's it...!

But how to make it positive is the question?

Then I will say "... sir/madam, we are starting fresh, we don't have a huge background, we are ready to provide the same candidate provided by other consultancies at half the consulting fees; and also we will provide you with free candidates for the first month ... so that you get confidence on us ..."

The freedom to give this assurance comes from my own business; I cannot tell these words if I am running a franchise.

"Franchise is like a bird in golden cage; while own business is like a bird which is flying freely in the sky."
Which one you want to be? Is for you to decide.