Choosing Between A Franchise And Building Your Own Business

We unpack the real tradeoffs between buying into a franchise and building an independent business from scratch, without pretending one path is “the answer.” We share the hidden setup work, the cost of early mistakes, and the mindset shifts that matter most when you want to scale. 

• the franchise vs independent decision coming down to personal wiring and values 
• startup setup realities like LLCs, websites, email, inventory, and warehouse efficiency 
• the “tuition tax” of early mistakes, including a painful SEO vendor story 
• creative control in the real world, including what happens once you hire a team 
• vendor relationships, wholesale access, and how buying power changes margins 
• support as an accelerant, from coaching to emergency problem solving 
• brand recognition, marketing collateral, and getting those first key clients 
• scalability through metrics, projections, systems, roles, onboarding, and KPIs 

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Transcript

Franchise Or Go Independent

SPEAKER_01 0:00

There is no right answer between franchising a business or choosing to go independent. I know that might be controversial. I know I'm supposed to say like you should franchise, but I want to be if you're the right person. Um, but I want to have a really transparent conversation today of like what the difference is of building your own business versus franchising. There are pros and cons to both. I think some people are naturally wired for the franchising community and they love it, and that's where the value comes for them. I think some people are naturally born and more geared towards building their own business. So we're gonna talk about both of those aspects today, and so that you can kind of assess and go, where do I fall on this camp and what makes sense for me? Thanks for joining us today. I am Elisa Sparks. I am here with Mr. Alan Sparks. What's up? And we are excited to talk to you today. Welcome to In Good Space.

SPEAKER_00 1:02

Let's have a day.

SPEAKER_01 1:04

So, what we really want to deep dive into today are the differences between choosing to buy into a franchise system or a pre-existing business model, right? Or building your own.

SPEAKER_00 1:15

Sure.

SPEAKER_01 1:16

I think this is a fun topic because I get to see both sides of the coin. Um, I started um without a business and built the entire system. And I know what that journey was like, the good, the bad, the ugly, right? Um, but we're also here on the franchise side and get to see what their experience is like. Also, good, bad, ugly, right? Um, so today we're gonna deep dive into some of those key topics.

SPEAKER_00 1:37

Let's do it.

Setup Realities And Hidden Work

SPEAKER_01 1:38

Let's start with setup. So I think setup is often that like underlooked element of um building and starting a business. It's not just in our world of staging, like the inventory you need, the warehouse you need. Um, but even on the warehouse side, it's how do you set up your warehouse in a streamlined way that is going to make sense and be the most efficient. I reorganized my warehouse and reset up my palette racking three or four times before I finally realized like this is the way that makes sense. And every time we did it, it cost us a ton of money and labor. But the other setup piece that I think is important to highlight is there is so much involved in like building and setting up your business. Um, you have to set up your LLC with your state, um, right? You have to also build a website. You have to optimize your SEO so that people can find you on your website and figure out what the heck SEO is and how to use it in your business. You need to set up and build email addresses. You need to be thinking about all of these little nuanced details, business cards and the design of the business cards, all of these silly setup details that you're like, cool, I'll just start a business. And then you pause and you're like, oh my gosh, it's so much work to just establish and exist. I'll share with you an embarrassing story. I don't know if I've even told you this. Um, that happened when I started Linden Creek. Um so I built my own website. I thought that was super fun. And then this company reached out and they're like, we're gonna help you with your SEO stuff. We only cost, you know, $1,000 a month, which was a steal of a deal in the SEO world. That should have been my first red flag. Um and they're like, we're only $1,000 a month. We'll get you everywhere so people will recognize and see the Linden Creek name and brand. And I was like, fantastic. I don't know what I'm doing. I don't even know what SEO stands for. So let's roll with this. You're gonna help people find me. Let's do this. So I started partnering and contracting with the company. Um, I had reviewed their references and their, you know, work and everything looked good. And they said, okay, send me a bunch of images, send me, you know, your marketing and your logo. And so I sent them everything, super excited. And then they started posting these YouTube videos that were like um rolls of pictures of things that I had done with like weird copy and text and words and like really bizarre music behind it, and like everywhere. I mean, it was like every day, seven new random YouTube videos of like carousels of pictures were showing up. And I called them and I was like, What is this? And they're like, This is SEO. We're putting you everywhere. And I was like, This is not my brand. This is not a reflection of who I am. This is not a reflection of like how I want to be presented in front of the world. Like, we have to pause and stop. And they're like, No, we build this so that you're out there everywhere and this is how it's done. And after a whole lot of back and forth, I had to fire them. Um, so thousands of dollars into this lovely process, months into this process, came back to the place of having absolutely nothing done for my business, needing to learn and understand the SEO game. And if you want to really do a Google search and dig deep, some of those YouTube videos are still out there to this day. And I cannot, for the life of me, figure out how to remove them. Like I have reached out to YouTube, but because I didn't own the accounts, because they helped me set them up, I have zero access to them. And so there are very embarrassing, like Linden Creek 101 mistakes out there for the world to see forever. Um, but these are the little mistakes that you make when you build your business, outside of even like how do I fulfill a client's need that happen, that are expensive, that are just tuition for learning. Is that bad? No. But there is a tuition tax for everything new that you are about to build that you just don't happen to know yet.

SPEAKER_00 5:06

I really don't have anything to offer that, except for the internet does not die. So those videos are still there. I've seen them.

SPEAKER_01 5:11

They're not good.

SPEAKER_00 5:12

You're in a better place.

SPEAKER_01 5:13

Oh, we are in a better place today. That's correct. That's correct. Love design, but think like a business owner. If you're ready to leave your nine to five and want to do something that's buildable and scalable, check out linden-creek.com slash franchise and see if Linden Creek is the right fit for

The SEO Mistake That Lingers

SPEAKER_01 5:28

you.

SPEAKER_00 5:28

Let's talk about creative control. Is it really that different?

SPEAKER_01 5:32

Here's something that I find to be so interesting about that is when you are a franchise owner and you're buying into a model, you're like, okay, I have to play within these guidelines, right? So like I don't have full autonomy and what I want my creatives to look like where I want them to be, because they have to be within brand standards. And that's true. But I think what people oftentimes forget is

Creative Control And Brand Standards

SPEAKER_01 5:52

like if you are a business owner that is building a team, like if you are a solo preneur, go do your thing. But if you are a business owner that is building a team, one day you are going to give up your creative control to your lead designer. And I know this because this is exactly what I did, right? Like we had to make a pivot at some point because I can't review every design that goes out the door that happens every single time. That I had to lean on somebody that I trusted their decision making, their creatives, their advice, and said, yes, let's do it. And my creative control went to that lead designer. Um, and that has always been the case and is the case when you are independent. It's becomes really challenging to say, like, I'm gonna build all the client relationships and review every single design before it goes out the door to make sure it's within brand standards and consistent. And so I think there's some um safety almost in saying, hey, as a brand, here's what our brand guidelines are. As creatives, these are what our creative guidelines and parameters are so that you don't have to worry about having a lead designer that maybe pivots out one day into their own little ventures and then you go, great, great, now I bring in somebody new, but now my visuals look a little bit different, right? They design their mood boards a little bit different. They create spaces that have a slightly different aesthetic. One was more modern, now we're more transitional, right? Like all of these elements play in that when you have something that is larger, like a franchise, you have a more consistent and collected look and feel because those brand guidelines are truly there.

SPEAKER_00 7:18

Talk about the inventory that makes up those designs, right? And the cost of acquisition and all that kind of stuff.

Vendor Relationships And Buying Power

SPEAKER_01 7:24

So I think one thing people don't understand is the unique journey that it takes to build relationships with furniture vendors if you're gonna go wholesale. Um, I remember when I first started, I went to High Point, and it's this really cool design market, and you walk into these showrooms and all of the sales reps are there for each brand, and you talk to them about what your needs are, and they're like, hey, you have to spend this much money, here's what the cost of everything is, and it's really overwhelming. Everybody has different shipping rates, everybody has different policies on minimum buys, and so you're like trying to do math, but everybody plays the game a little different and figure it out. And then I came home and I was like, okay, here are the ones that I want to work with. I'm so excited. And so I'd like to reach out to them and I'm like, I want to work with you. And do you know that it's like crickets? Like to get somebody's time and attention and to get in front of them and have them say, Yes, I want to work with you too, and I'm excited, is really hard to do.

SPEAKER_00 8:16

Is that because you're so little and so new?

SPEAKER_01 8:19

It's because I was little. I was a peon, a brand new business, didn't necessarily have the volume yet to support it. And so no one gave me the time of day. And so it's a lot of like standing there yelling and going, Hey, here I am, hey, here I am. Like I'd love to work with you. Please work with me. Um, until somebody says, Okay, great, let's go ahead and build this relationship. And then you you learn tricky things, you know. This vendor, we have issues with shipping, right? This vendor puts out this really good product, but this one turns out it's not. So you learn a lot about who to buy from, what to buy, where to buy, all of those things that again are costly mistakes in the process. Now, fast forward to today, a totally different scenario. Our vendors come and show up at our office and bring us goodies on the regular, and they're like, please keep working with us. We really value you. Um, and so the conversation changes. So when you buy into a franchise, you're buying into these existing relationships, you get a different level of customer support from these vendors. You have the opportunity to know which products to buy, which challenges you might encounter with different ones, so that you can buy smarter and not waste your money where it shouldn't go.

SPEAKER_00 9:23

I think you're making the argument for a franchise. I know.

SPEAKER_01 9:26

I don't mean to be, but you know, there is something to that. There's also a massive buying power piece of it. 100%. The price that we can get a lot of our furniture for is different than if you are starting out on day one. Can you get there? 100%. But you're just gonna pay to get there until that day comes. That's correct. I think the most underrated factor on the table that is a really big differentiator is

Support, Coaching, And Not Going Alone

SPEAKER_01 9:46

support. I want you to talk on this one.

SPEAKER_00 9:48

Yeah, uh man. So like think back to your journey as you know, a new entrepreneur and starting your own business. Like uh that's a lonely island in a lot of ways, right? I mean, you can lean on people for business tactics and so forth, but really if if you're getting into that creative space, it's it's difficult to lean on somebody, you know. So um I think support is essential. You really need it, it helps accelerate your growth. It's an accelerant, right? And that'll get you places faster.

SPEAKER_01 10:15

Yeah, and I think it's twofold. Like support is defined as um, you know, yes, let's help you with business coaching. Like we essentially are business coaches for our franchise owners at a very niche level. Like we know how to run staging and design projects, staging and design businesses. We can review PLs, we can talk through hiring strategies, all that fun stuff. So that is definitely part of it. Um, the other part of it is the phone call we get randomly that's shoot, my movers just scratch the floors. What do I do? Right. And it's like we're a help desk, and you're like, don't worry, it's in your contract. Go ahead and reference your contract. You don't pay anything. And they're like, whoo, thank goodness you had that in the contract. So it is a twofold approach of like weird, nuanced situation, help me. Um it's an emergency slash like consistent coaching. But I think, you know, that's the franchise model, right? It gives you that training and support. If you are gonna go independent, the biggest thing that I would say is find those two things somewhere else in your community. Because if you really go at it alone, it is lonely, it is expensive, um, and you're going to make so many more mistakes than you need to. So find a mentor or a business coach that you can lean on that that can give you true financial advice and recommendations on business strategy so that you can be successful. And then on the flip side, like build yourself a network of other designers or stagers that might be willing to open up about some of those conversations that you can pick up the phone and call. Because if you don't have that, it is a very real struggle.

Brand Recognition And First Clients

SPEAKER_00 11:43

So true. Boss, go ahead and enlighten for us um brand recognition, that uphill battle that nobody really talks about.

SPEAKER_01 11:50

You know, I think brand recognition is twofold. Um, some of it is like, have you heard of, you know, XYZ brand, or we've never heard of you as a company. But some of it is the marketing collateral tools, resources that exist to allow you to be successful. Um, when I first started Lyndon Creek, getting that first client was really challenging because no one had heard of me because I didn't exist. Nobody knew what I was capable of because they hadn't seen my work. And my only portfolio was pictures of my house that I just hoped nobody would like do the math to figure out and that somebody would say yes and make a bet on me, right? Whereas when you're buying into a franchise, you have a website with lots of portfolio work across a lot of different demographics. You have experience you can lean on from that perspective. You have existing customer reviews that happen and exist. We hear our franchise owners that are like, we love what Lyndon Creek does. You know, they're working with a brand new owner, and they're like, we trust the brand, so therefore we're gonna keep working with this new owner. And so it gives you this foot in the door, it gives you some representation on day one to kind of dive in and get started and not just start from square one and go, here I am, take a chance on me, because that's what it's gonna look like when you start out on your own. Yeah. And that is a journey you can take, but just know that it is a lot of networking, it is a lot of relationship building and waiting for a few of those first key clients to say, yep, I'm willing to bet on you. Yeah. Okay, so talk to me about scalability.

Scaling With Metrics And Systems

SPEAKER_01 13:15

I have a business in place, right? I'm excited to 2x my business in the next couple of years. How do I actually go about scaling and what is that journey like for somebody that's going independent versus somebody that's kind of working within a franchise model?

SPEAKER_00 13:29

So I think if you're going independent first as you build projections for your business, it's like, where do I start? Like I don't I don't know what an average ticket price is. I don't know what my install is gonna take. I don't know what my costs are yet. Um, and to your point earlier about you know, just inventory and building relationships with vendors, like your cost is certainly gonna be very high in the beginning. You know, so I think that I think that's a huge thing. Building projections and be able to know where you're gonna go can be difficult. Um you can again, you've always said it. If you if you want to do it, you can get there, right? Um it's gonna be a little bit of guesswork, probably more guesswork in the beginning, and then the math takes over once you have a pattern. Um so you can do that. If you get a franchise, you know, then it's already been done for you in a lot of ways. Uh that somebody has already blazed that trail. There's already metrics that you can fall on, there's already some certainties. Um buying power is a is a huge thing because now your costs are fixed, you know, at a specific rate. So but that certainly helps there from scaling. But you you can do both. You can do both. Um one route is certainly easier.

SPEAKER_01 14:32

I think the other big one is like systems. I think sometimes as business owners, we overlook the importance of systems. Like how does something get done? What happens when you scale? Who is the next hire? What does your team look like? What does their org chart look like? What are each of their roles and responsibilities? What are their KPIs? How do I know that they're being successful? How do I onboard them? What does their first 30 days and 60 days and 90 days look like? Like all of these details where it's like you have two choices. You figure it all out and you build it. And you maybe try something and you're like, that was not quite it. And you tweak it and you're like, getting closer, and you tweak three more times and you nail it. Um, or you go, okay, give me the playbook. Let's just execute and go.

SPEAKER_00 15:12

Absolutely.

SPEAKER_01 15:14

So, you know, I think transparently, like this conversation, we look at it and because we've just watched it so many times, sure, and we know how much faster our franchise owners are getting to different levels of revenue and growth than what we see in like the typical market in our industry. And so we're like, oh gosh, franchising. But what I do want to pause and say is this if you are on the fence of like, do I franchise or do I make a decision of doing this independent?

Picking The Path That Fits You

SPEAKER_01 15:39

Here is the biggest difference for me. If you are one that loves to innovate, that like wants to build and think through and create and like problem solve and is not afraid to invest the money in the mistakes that you're going to make, then going independent can work. And you're going to probably get there a little bit slower than maybe you would if you had a system and a playbook in place. But you will at some point in time get there with your blood, sweat, and tears, right? If you are like, cool, somebody else has figured this out already, and I just give me the playbook so that I can get there and execute. I don't need to be the one to reinvent the wheel. Then I and you are really excited about community and support, then I think franchising is something that makes a ton of sense. Again, there's not a right or wrong in this. I think it just comes down to like what do you personally value most as you're thinking about and building your business? What is your goal and your outcome in this? Um, and then really trying to figure out how to align that with what the offerings are in front of you.

SPEAKER_00 16:37

Statistics help me make decisions, right? Like proven like metrics.

SPEAKER_01 16:41

And it's not magic.

SPEAKER_00 16:43

It's it's math. Okay, it's correct. Um, and one of my favorite stats that we learned at the IFA conventions last year is that franchisees as a general rule in the United States are 40% more profitable than independently owned businesses. And I think you just outlined why. It's because of all that time that is spent recovering from mistakes, figuring it out on your own. Again, it can certainly be done, right? But when there's a playbook that is presented to you, it certainly gives you an advantage.

SPEAKER_01 17:10

Yeah. And I think, you know, I took the independent route, obviously. You did. Um, I built my business, but I reflect back on, you know, the eight years I've done this, and I'm like, the number of expensive mistakes that I made. Um and and still to this day, you know, like we are inventing our business when it comes to you know what we're doing today and manufacturing art and some of these fun, exciting things, and we make mistakes, or my team makes a mistake, and they're like, I'm so sorry, I spent your money. And I'm like, we didn't know until we tried, right? That's right. And so, like, there is a tuition in that. Um, it's an exciting journey too, but they are two different things, right? Um, and so knowing and understanding which one is gonna be a better fit for you and where you're going, that's what the key

Commit Fully And Closing Thoughts

SPEAKER_01 17:50

is.

SPEAKER_00 17:50

All right, so in summary, let's leave you with two points. Number one, the right path determines how you're wired. Right? There's some certain romance to starting your own thing and doing all that, and that's fine. Like it's a beautiful thing, but romance doesn't pay the bills, right? It's particularly in the first year when cash is really tight. So just weigh that. Weigh that as you decide is franchising right for me, or do I want to be an independent business owner?

SPEAKER_01 18:13

And then I think the second key to really think about is whatever decision you make, commit to it and commit to it fully. So if you decide I want to go independent, you don't get to be frustrated later on that the support's not there, right? Like you have to go all in and go, I know that I'm going to like blaze a trail, I'm gonna build this, it's gonna be gritty, but like I'm here for it and fully embrace that. But on the flip side, if you decide to franchise, that also means like you're leaning on the support, you're leaning on the systems. So you can't get frustrated when you know you feel like there's this framework and you wish that it pivoted ever so slightly. And so really understanding that there are truly pros and cons to each, but fully embracing whatever path you go on, that's the thing that's gonna lead to success. If you're sitting with this decision right now and trying to figure out which path is best for you, what I want to say is this independent development and growth in a business is a good thing and it is beautiful. Doing a franchise opportunity and buying into a model is a good thing and it is beautiful. But choosing to do so wholeheartedly is really where the success comes from. With that being said, if this was valuable to you, if you feel like it was a conversation you needed to hear, subscribe. We want to have more conversations like this. And until next time we get to connect, thanks for spending time with us. This was in good space.