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HR Consultancy :: Franchise vs. Own Business

There are many advantages and dis-advantages with both but the main ones are.

a. Franchise:
You will get Clients easily which is the main backbone of any business.
Initial Setup cost will be high; in addition recurring cost. Each month you will have to pay a fixed monthly percentage for the Franchise.
You don't have your own identity.

b. Own Brand:
Setup cost is less; whatever be the profit may be 1 Rupee or 10000 Rupees it is going to be yours.
Over a period of time you can build your own brand name.
Getting clients initially is going to be hard.

What’s my suggestion: Own Business; Why?

a) From a Client's point of view...
" ... I don't bother whether I get a candidate from XYZ Consultancy or ABC Consultancy; all I need is a candidate and I am happy with whichever consultancy that provides me with a candidate .... "

" ... I am going to pay the same amount of money to XYZ Consultancy or ABC Consultancy irrespective of their business backgrounds ..."

So, franchise does not give any major edge.

b) Set up Cost
Initial set up cost must be kept to a minimum. Own business gives the chance to control my expenses and to select my own expenses.

c) Getting Clients
I know this is a negative point; but how to make it positive?
When you are going to meet a client; you will discuss about the consulting business; you will request him to give you an opportunity ... what the client will say " ...see, we already have a lot of consultancies working for us; we don't find any reason why we must come to you? ... so sorry ..." that's it...!

But how to make it positive is the question?
Then your response toward it must be "... sir/madam, we are starting fresh, we don't have a huge background, we are ready to provide the same candidate provided by other consultancies at half the consulting fees; and also we will provide you with free candidates for the first month ... so that you get confidence on us ..."

The freedom to give this assurance comes when you are running your own business; you cannot give these assurances when you are running a franchise.

"Franchise is like a bird in golden cage; while own business is like a bird which is flying freely in the sky." Which one you want to be? It is up to you to decide.

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