Gaining profit is one of the reasons why most people do business. They buy stocks, start their own business, or the most popular now is franchising. However, due to some factors – economy and competition- it is somewhat risky to do so. Hence, in deciding, one should know the pros and cons of each.
Deciding whether to invest money on franchise or start a new business requires knowing the different features one can get are worth the cost he/she has to pay for. This may seem to be a debatable issue that is why the organization JAM prepared a debate regarding this issue. There were two groups, each group had discussed and rebutted.
It is your own idea (originality), you are the boss and you can implement basic management principles (planning, controlling, etc) are some of the reasons given by those who favor starting a new business. But, we noticed that the most of their answers were being repeated and not elaborated by providing specific examples. An example is the implementation of management principles. It would have been better if they have provided situations in which these can be used since these management principles can still be used in franchising. Furthermore, when they had rebutted the other group, we noticed that they just repeated what the other group had said without elaborating it further. Despite some weak points, there are some good things they had pointed out. They discussed that on starting a new business one can reap the fruit of its own labor. One has control with the business without the franchisors collecting fees. This may seem true since in franchising one cannot change the business. It is as it is.
The group of franchising, on the other hand, pointed out that it is less risky since there is an existing business and a protective reputation from the franchisor. One good point that they had discussed was the advantages of franchise. They talked about the continuous support from management, advertising was not costly, and no required feasibility study. However, this strong point is somewhat their weak point for reason that they merely focused on discussing it without opposing the other side. The time was consumed explaining them.
In a nutshell, we can say that it went good since we gained idea on the advantages and disadvantages of the two. This will help us a lot in the future on how best to use our money.