Starting an Online Franchise VS an Online Business Opportunity

As the internet grows, more and more entrepreneurs are looking to start a business online. It can be easier and cheaper to start, plus it offers the convenience of being able to work remotely. However, there are so many opportunities out there – how do you know which one is best?

The answer, of course, is that there is no single ‘best business’. The most ideal business for you may not be the same for someone else. Therefore, the best way to find the income opportunity that best matches your needs is to start eliminating some of those options. An easy way to do this is by comparing different types of business.

Let’s take franchises vs business opportunities.

At first look, they are very similar. They both offer a tested business model that entrepreneurs can buy into. Many times, they already offer a product or service that you can sell, so you don’t have to spend the time or money developing your own. For these reasons, these opportunities attract the same types of business people.

So What’s Different?

1. First and Most Obvious is Price. 

Traditionally, franchises cost a lot more money than business opportunities do. Many franchises cost so much money that they eliminate many potential investors right at the start. However, internet franchises are different. Less capital is required up front to start and less money is needed to operate the business on a daily basis.

Even so, there is a price different between franchises and business opportunities. Online franchises typically cost between $20,000 and $40,000, while business opportunities can usually be purchased for less than $500.

2. Second is Support and Training.

Franchises are known for their training and support system. Many franchisees also build working relationships with other franchise owners so they can learn from each other and help each business grow. Internet business opportunities don’t offer the same level of assistance. This can be an advantage to entrepreneurs who prefer to work independently, but not for those who like more support and guidance.

3. Third is Brand Recognition.

Larger franchise chains offer the benefit of brand recognition among consumers. They conduct ongoing marketing campaigns and encourage more trust simply because they are larger and more well known. Business opportunities are generally less well-known and therefore it is the job of the entrepreneur to develop this trust. This factor can make it more challenging where you are fist starting out. However, once you have a steady stream of clients and referrals who have grown to trust you, this is not as much of an issue.

4. Number of Options.

As you might have noticed, there are a lot more internet business opportunities than there are online franchises. Choosing the right business for you involves choosing work that you like to do or a product or service that you enjoy. Since there are less internet franchises to choose from, your decision may already be made simply by looking at your options.

For more small business ideas, visit The New Business Idea. You can also get start-up instructions for 200+ businesses and download the Home Business Start-Up Checklist free from HomeBusinesscenter.com.