If you had to choose, are you going to engage in a new business or invest in a franchise business in the Philippines? Well, each has its own set of benefits and downsides. The choice between the two depends on various factors such as your preferences, risk tolerance, and business goals. So in this guide, let’s dive into the pros and cons of starting a new business versus a franchise business.
Starting a new business is exciting but at the same time exhausting because you’re starting from scratch. Below are the pros and cons to guide you in your decision to engage a new business.
Unique Branding
Building a brand from scratch is no small task but it can be incredibly rewarding. When you start a business with a blank canvas, you have the opportunity to create something unique and set yourself apart in the market. With careful planning and a clear vision, you can establish a brand that resonates with your target audience and stands out from competitors.
Creativity and Flexibility
Engaging in a new business lets you have complete freedom to create and shape the business according to your vision. You can adapt quickly to market changes without being bound by a franchise model. Thus, your creativity and flexibility is sky’s the limit without anyone being restrictive on you.
Innovation
Another advantage is the opportunity to introduce new products or services without restrictions imposed by a franchisor. This means that as a business owner, you have the opportunity to explore innovative ideas that could potentially attract a wider customer base and evolve your offerings to meet the customers’ shifting demands and desires.
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Higher Risk
The success of the business depends heavily on your ability to navigate challenges without the support of an established brand. When a business is still new in the market, it requires a unique blend of resilience, resourcefulness, and innovation to thrive amidst competition.
Learning Curve
Along with higher risk, starting a new business lets you face a steeper learning curve, especially if you are entering an industry you are not familiar with. Also, entering a new industry can be a daunting task, particularly if you lack prior experience or knowledge in that field.
Marketing Challenges
In today’s competitive business landscape, building brand recognition and trust can be challenging. With countless options available to consumers, it is essential for brands to differentiate themselves and stand out from the crowd. It requires significant marketing efforts and strategic business planning.
On the other hand, a franchise business seems easy to manage because everything is already provided from the products to marketing materials. However, before you make that conclusion, get to know its pros and cons as listed below.
So, whether you’re considering starting a new business or investing in a franchise in the Philippines, it’s important to do your research. Both options have their pros and cons as individually discussed earlier, and what works for someone else may not work for you.
Whether you’re launching a new business or considering a franchise, securing a loan for a much-needed additional funding or business expansion is a viable option. If you want to embark on your entrepreneurial journey with specialized business loans, RFC has what you need!
Empowering Filipinos globally since 1964, Radiowealth Finance Company (RFC) has been a key ally in providing financial access to those with underserved credit. If you’re all set in getting a loan and breathing life into your business goals, click on the link below:
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Explore further details about RFC and its financing products by visiting www.rfc.com.ph.
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