Are you ready to kick your corporate career to the curb and pursue entrepreneurship? The first decision you need to make is whether to open a franchise or pursue independent business ownership. Take a deep dive into the pros and cons of each business model to make your choice clear.
Franchising Offers Competitive Advantage
Franchising offers entrepreneurs a turnkey business model. By signing on the dotted line, a franchise owner gains access to a proprietary business with a recognized brand. Contrary to popular belief, franchising isn’t all about fast food. Only 25% of franchises are quick-service restaurants. Business ownership would be out of reach for nearly 32% of people without franchising opportunities. Franchising helps the parent company increase its market share and enter new regions of the country. If you are still on the fence about pursuing franchising, Creative Colors International can help you take a look at the pros and cons of franchising and independent ownership so you can choose what’s right for you.
Creative Colors International is a leader in the leather and vinyl restoration industry. Our service technicians help customers and businesses make repairs, saving up to 90% in replacement costs. We strive to provide outstanding service to our customers by treating them as our most important asset. CCI franchisees create their own schedule with a small business that has unlimited earnings potential.
PROS
Proven Business Model. Franchising offers a low-risk, high-reward opportunity. A franchisee takes control of their future, operating a proven business model with a track record of success. A franchise disclosure document allows prospective franchisees to look at the franchisor’s bottom line and see how the business performs. Potential entrepreneurs can also connect with the brand’s network of franchisees to learn about best practices and get a timeline to profitability.
CCI has more than 42 years of experience in the restoration industry, with 125 mobile vans nationwide. It provides its 72 franchisees with a roadmap they can follow to succeed. “Our management team has a combined knowledge of more than 80 years in the leather restoration industry. We have all either owned or worked in a CCI franchise,’ said Mark J. Bollman, CCI’s president and co-owner. “Our team is built on a foundation of relationships and friendships that stress the importance of helping each other develop. Our franchisees are part of our extended family.”
Built-in Training and Support. Franchisees receive in-depth training to learn their business inside and out before they launch. They do not need experience in their industry of choice because the franchisor helps them learn the ropes. CCI’s new franchisees spend three weeks at the company’s corporate headquarters learning the latest restoration techniques and back-office operations. In addition to being available by telephone, the company also conducts periodic field visits, regional meetings, and technical seminars to support its franchisees.
Marketing Guidance. A franchise owner receives assistance with their marketing strategy. They get all of the various tricks of the trade they need to add new customers. CCI’s franchisees receive help with customer list building, direct mail campaigns, and online advertising. The company also doles out website search engine visibility and optimization and on-demand variable print flyers, postcards, and trifold brochures.
Built-in Customer Base. Many franchise owners have customers before they even open their doors. Brands sign national contracts with large companies to help their franchisees drum up business.
Exclusive Product Line. Part of the franchise agreement gives new entrepreneurs access to the parent company’s line of strong products. Typically, research and development teams dedicate resources to adding new products and innovative techniques to help your business thrive. CCI’s products are designed to get the job done right the first time. We use water-based, environmentally friendly products to make all of our repairs.
CONS
Having the security to operate a proven business model with training and ongoing support does come at a cost. The total initial investment for a CCI franchise is between $86,980 and $102,100, including the down payment cost of your van, van setup, pre-opening travel, insurance, office supplies, working capital, and other expenses. Some people balk at franchising because there are explicit standards they need to follow.
Startups May Miss the Mark
American history is full of people who took a risk and opted to hang out a shingle. If you have a unique idea for a business, pursuing an independent business may be the best choice for you.
PROS
Independent business owners get to call all the shots from the ground up. People who start businesses from scratch get to fulfill a dream and chart their own course. Initial upfront costs might be less to start a new business, especially if you ramp up slowly.
CONS
High Risk of Failure. Approximately 21% of businesses fail in their first year, and at least 48% fail at the five-year mark.
Heavy Workload. Fulfilling your dream takes a lot of hard work and sweat equity. You will need to create a business plan, find the right location, develop a marketing strategy, and that’s just the beginning.
High Stress. The pressure of starting a business on your own can send stress levels sky-high. Not being able to depend on a regular paycheck is daunting and many small business owners have the added responsibility of making sure their employees can pay their bills. Extended periods of high stress can be detrimental to your health. It can lead to a variety of health risks, including obesity, high blood pressure, and heart disease, according to the Mayo Clinic. Independent business owners can combat stress by networking with other entrepreneurs in their local community to help reduce stress. However, the issues they face are unique to their business.
Require Aggressive Marketing. Starting a business from scratch requires introducing your brand to the community you serve. Be prepared to devote the time it takes to build a loyal customer base, grow your social media following, and increase foot traffic.
Learn More About Owning A CCI Franchise
Opening your own business by becoming a leather care professional is attainable. If you think the pros of franchising outweigh the cons, contact CCI to request franchise information and learn more about opening a mobile franchise
