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The Adventures or Tin Man

In: Business and Management

Submitted By haribo23
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Sarah decided to purchase a Sharkey’s hair cut for kids franchise rather than set up her own sole trader business. To what extent do you agree with her decision? (15)

A franchise is a business that allows other to mimic its idea, brand logo and more for an agreed price or royalty fee. Sarah is a busy women who must devote a certain amount of time to looking after her children and as a sole trader business it would be harder work to get set up as a pose to a franchise. There would also be a lot more risk involved in terms of making the start up successful. A franchise is business that has proven to be a success to some degree. By choosing to be a franchisor she is minimising this risk and setting up a business that is “half way home” so to speak. By becoming a franchisor, Sarah benefits from having flexibility of hours which she needs as she has children and a good amount of decision making. She wont be able to have full control like she would if she was a sole trader but perhaps this is better as less decisions to make will mean less time needed to be spent.
On the other hand maybe she could benefit more from starting up as a sole trader as she would have more control over the day to day runnings of the business as she would have full control and ownership. She would benefit from higher self satisfaction and be slightly more motivated to make the business successful. After a while she could employ more people and devote less time to the business however certainly in the starting up stages she will have little free time.
Sarah has worked inside of a business as an IT consultant which means she will have some experience in how a successful business operates but not how one is run. She wasn't a manager or in charge of a segment of the company so maybe taking such a bug step wouldn't be advised and perhaps it would be more wise to set up a franchise where more is…...

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