As a recap, in the last part of the Mobile Storage Series you learned how to create your own mobile storage business plan. Now that you understand the benefits of starting a mobile storage business and you know how to find your investors, warehouse space and the necessary equipment, you are probably wondering if you start your own mobile storage business or buy into an existing franchise.
The decision of whether to start a business or purchase a franchise is a decision people are faced with in every industry. Understanding the pros and cons of franchising and the pros and cons of owning your own business will help you to make the best decision for you.
Pros and Cons of Joining a Mobile Storage Franchise
The Cons of Joining a Franchise: A driving force behind someone who chooses to be a business owner is the desire to be his or her own boss. That is not the case for a franchisee, though. A franchisee must adhere to the standards and practices set by the franchise owner. The franchise owner wants uniformity throughout all of its branches, meaning it has the right to control all aspects of your business. The hours of operation, uniforms worn by employees, equipment used, the goods and services sold, how often the business gets renovated and even the location are common restrictions invoked on franchisees. This leaves little control to the franchisee, making it an unattractive option for someone who wants total control of their business.
When you are a franchisee, you are required to pay royalties to the franchisor. These fees are in exchange for the right to continue to use the name and brand associated with the franchisor. The amount of the royalty may be a fixed cost, or it may be a percentage of your sales. Unfortunately, even when your business isn’t profitable, and sometimes even if you decide to end your lease early, you will still have to pay royalty fees.
Another drawback of buying into a franchised business is the competition involved. Unique to any other business model, a franchisor has competition coming from not only other similar companies, but the franchise brand. If the franchise brand chooses to open another location down the street from your business, it could eat through a significant amount of your sales.
The Pros of Joining a Franchise: When you become a franchisor, you know you are investing in a business model that already works. The brand recognition associated with a franchised company has already been built, meaning establishing a customer base has already been done. This can help to alleviate stress from the franchise owner because if the business is popular, there is most likely going to be hype about it opening. Many people view a franchise as being a less risky option.
Pros and Cons of Owning Your Mobile Storage Business
The Cons of Owning a Business: Owning a business can be a financial risk. Business owners will invest a great deal of money, time and effort into a company that might not make it. Owning a mobile storage business can also be a lot of work. Between determining your location, finding able workers and sourcing the right equipment, there’s a lot to consider. Combined with the normal risk that comes with owning any business, some people simply prefer more conservative options.
The Pros of Owning a Business: When you own your own business, you answer only to yourself. You get to call the shots and run the punches without having to answer to someone above you. If you want to change your uniforms or store hours, you are allowed to do so. When you’re the boss, no one is able to force costly renovations on you or mandate what equipment is used.
As a business owner, you do not have to worry about paying royalties, the initial startup fee or advertising fees. All of the money you make from your business is yours. Altogether, the fees and royalties involved with joining a franchise can eat up a great deal of your revenue. That doesn’t mean you won’t need to spend some of your money on marketing, but you’ll be in charge of how, when and where to advertise your business.
Owning a mobile storage company also comes with better work-life flexibility and potential income. A business owner gets to create their own schedule, which means they can make more time for the things they care about. When you work for a business, your income is most likely set. As a business owner, there is also no limit to the amount of income that can be made. And, the best part is, that income won’t have to be shared with a franchise. Yes, you’ve got to think about your staff, but you’d have to do that too if you worked for a franchise.
Weighing Out the Benefits of Joining a Franchise vs Owning Your Mobile Storage Company
The decision of whether to own a business or join a franchise can be a difficult choice. But, as you can see from this article, when you weigh out the pros and cons of each option it really comes down to what kind of person you are. If you’re the type of person who has always wanted to be your own boss or who enjoys the challenge of building something from the ground up, the perks of owning your mobile self storage company may outweigh the risks.
In the next installment of our Mobile Storage Series, we will discuss how to select the right container lift system. If you can’t wait until then to learn more about the Horizontal Lift system, contact us today!