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Three Ways to Start Your Own Business

There are three main ways to start your own business. It's important to understand the available options first, in order to clarify your vision for your entrepreneurial venture.

・Starting a business independently from the start

This method involves building everything from scratch, including brainstorming ideas, constructing a business model, securing funding, creating products, and advertising. While there's the enjoyment and fulfillment of realizing your own goals, you'll often face difficulties in management and sales. If you start without proper preparation, you might fail in a short period, but if you study and work hard, you can experience a great sense of accomplishment.

・Becoming independent after gaining expertise in your target field

If you have a clear goal, such as "I want to become independent in this industry," you can work in that industry for a certain period to gain expertise before becoming independent. Rather than preparing from scratch without any prior knowledge, this method allows you to acquire the necessary skills and knowledge in advance, making it a more reliable approach than starting a business independently from the beginning. Some restaurants, for example, have support systems in place that allow employees to work while aiming for future independence.

・Utilizing Franchise

Franchising allows you to start a business by borrowing an existing business model and receiving a certain level of support from the headquarters. This method is used in many industries, such as convenience stores and restaurants, and you become the owner of a new chain store and are entrusted with managing the store. The advantages for the new owner include being able to use an already developed business model and learning management know-how. On the other hand, the franchise headquarters can receive royalties from each owner and has the advantage of strengthening its brand power by leveraging the strength of each owner. Because you are using an existing business model, it is difficult to strongly push your own ideals, but in return, it is possible to secure stable profits and manage with less risk.

Three Reasons Why We Recommend Franchises

Opening your own store independently is a dream. However, as it is said that 90% of businesses that are started fail within five years, it is not something that can be started lightly and last. If you are starting your own business for the first time, we recommend a franchise where you can receive various kinds of support. Below, we will introduce three reasons why we recommend franchises.

・Even without experience, you can operate with support

To open a business, you need to acquire the necessary specialized skills and management know-how, but with a franchise, you can operate the store while receiving the necessary know-how from the headquarters. Product development and service improvement are mainly handled by the franchise headquarters, so it is possible to concentrate on store operation with lower risk than starting from scratch.

・You can benefit from brand power

With a franchise, there is already a certain level of brand power, so you can expect greater customer attraction than opening an unknown store. It is a big advantage in store operation that many people know the store and service. With a franchise, you can benefit from that.

・High promotional power

The high promotional power of the franchise headquarters can reduce advertising costs, which tend to be high. Making your store known and acquiring new customers are essential for continuing your business, but the advertising costs for this are high. With a franchise, the headquarters often covers promotional costs such as advertising, which can lower the hurdle for fundraising.

Fulfill your dream of owning your own store with a franchise

To independently own your own store, you need to acquire various know-how and also bear a certain level of risk. With a franchise, you can become a store owner while acquiring know-how, and furthermore, you can aim for stable operation by utilizing the power of the brand. Even within the same "franchise" model, characteristics vary depending on the industry, so it's crucial to carefully review the contract you'll be signing with the franchise headquarters. Carefully consider your options before pursuing your path to independent entrepreneurship.

(The information regarding amounts, durations, and procedures presented in this column is general in nature. For more details, please contact FC Owners.)