Franchising or Mom and Pop; What Direction to Go When Starting Your Business With James Cammilleri.

James Cammilleri On What Direction to Go When Starting Your Business

Deciding to buy a business is one of the largest decisions you can make. It is an exciting time, but also a stressful decision. What industry? What store? And one of the biggest options, open a franchise or go “mom and pop”? Once you have figured out what industry you want to start up in, you will often land on the option of franchising. Of course, there are unique advantages and disadvantages to either option. James Cammilleri is not only a philanthropist, the co-founder of Elevating Christian Ministries, but is also a business owner who has been through this challenging decision a number of times. As a result, he has some valuable thoughts and insights to help you navigate the business landscape.

The benefits of franchising

1. A Starting Point

When opening a business based on a franchise you are immediately placed at a starting advantage, you do not need to re-invent the wheel. The company has already found a business model that works, as well as designs, marketing, and sales items to go with it. Having that all done for you before even opening puts you and your business in a great starting place.

2. Franchiser Support

The franchiser also provides assistance when it comes to many other aspects of running the business. Such as marketing, design, and choosing product. All processes that are otherwise difficult and expensive to accomplish. All of the products and logos are already there, meaning you have less things to worry about in the day to day operation of your business.

3. Immediate Brand Recognition

One of the biggest benefits is the immediate brand recognition that comes with a pre-existing business. Your new franchise is already popular, which will provide you with an immediate boost to sales. Whereas a new, self-created business will have to start from scratch.

The Benefits of “Mom and Pop”

Of course, simply choosing to franchise is not the best choice for everyone. There are some differences which lend certain people an advantage in the world of Mom and Pop.

1. Increased Control

When opening a franchise, the franchiser will have a set of their own rules and regulations which you will be required to follow. Opening a mom and pop store means that you are able to set your own rules, meaning that the sky is the limit. However, along with that freedom also comes a greater risk of failure.

2. No Product Limitations

When operating a franchise, your product choices will be chosen by the franchiser. For many franchises this works fine, they are already popular enough that they do not need to expand their product choices. But for some, who may feel that they want more control over their business decisions, a Mom and Pop allows for more freedom in product choices.

3. Flexibility

James Cammilleri also points out that one of the most major freedoms that comes along with a Mom and Pop shop is the freedom from franchise fees and royalties. Providing you, the owner, more flexibility for where you decide to spend your money.

Overall, there are arguments for and against franchising when starting a business. Franchising does put you at a very immediate advantage but can also limit your control over the business. If you are the type of person who needs to be in total control, it may not be right for you. But if you are not worried about the control and just want to run a business, a franchise may be perfect for you.

Follow James Cammilleri on Twitter and LinkedIn.

Co-founder of Elevated Christian Ministries focusing on providing infrastructure and food to communities in Haiti.

Co-founder of Elevated Christian Ministries focusing on providing infrastructure and food to communities in Haiti.