Startup and Franchise business in India

Does the thought of having your own business fascinate you? You can do it in two ways: either by going for a startup or by opening a franchise business in India. If you are confused between the two, this blog will help you as it discusses the pros and cons of both types of business.

Let’s first check the pros and cons of establishing a startup in India.


For any recent college graduate, starting a business is the ultimate goal. Today’s graduates from IITs (and other universities) are starting their own businesses rather than working for an organization. Start-Up appears to be quite intriguing, but it also has a darker side. Startups have the power to succeed or fail. Let’s talk about its pros and cons.

Pros of Startup business in India

No restrictions on innovation

One of the main benefits of a start-up is that, unlike franchise businesses in India, you are open to trying new things. Because you have the freedom to think up and do whatever you want, you are not afraid of failing or breaking the rules.

When you work for a traditional business, you are not given this kind of independence. You can advance innovation and develop products that have never been made before. Working for another company will not allow you to discover a brave mentality, enthusiasm, or thrill, but only working for a startup will.

If the startup is promising, there is no shortage of seed funding

You won’t need to worry about funding if your idea is excellent. Today, there are several seed investors, both inside and outside the country, who are willing to invest as much as they want.

The amount of capital you have access to is unlimited. However, your new business must persuade them that the concept is excellent and will make back every dollar they invest. an unknown amount of recent investment by Tata into, an online auto marketplace.

You’re your own boss.

Since you are in charge of a startup, you are not required to pay attention to your customers. When you work for another organization, you frequently encounter situations where you must pay attention to management and make changes as necessary.

But in a company, you can take a chance and set your own rules, even though doing so carries some risk. Although you are not using a set formula in this instance, you can still accomplish it at startup.

Access to the startup ecosystem

The ecosystem is crucial. India does have a well-developed startup ecosystem. Your startup will be very successful if it focuses solely on online shopping or any other aspect of e-commerce.

As a result, if you have the ideal mentors who are willing to help you get through difficult times, you can be highly successful.

These were a few of the benefits of starting a business, both in India and overseas.

You must also consider all available information because a startup in India may encounter numerous difficulties.

Cons of Startups in India

No seed funding unless your startup is incredibly famous

You only receive seed money if your startup is incredibly promising.

Tata invested money in CarDekho at a time when the company was already valued at over $100 million. This is something that other startups cannot do. Forget about raising $100 million; only a select few firms succeed in doing so. So, without any seed capital, how will a mediocre entrepreneur raise money for their startup?

Underdeveloped Ecosystem

Only a few types of companies, such as e-commerce, have their own ecosystems. If you are entering a highly technical field (such as hardware startups), you will run into difficulties because there is no one to help you.

If your business is not about e-commerce, you won’t find mentors in India. The majority of entrepreneurs migrate to Silicon Valley for this reason.

Recruiting new employees can be difficult

Human resources are one of the issues. People aren’t terribly interested in working for startups. They typically have difficulties working for startups, so they steer clear of them and join a well-established business instead because their careers depend on them.

They don’t trust startups since they are unsure about their chances of success. Consequently, finding personnel might be difficult.

Higher costs, regulations, and taxes

Due to the high cost compared to other countries in the world, starting a business in India is not that simple. The government has restrictions that make things more challenging, and the taxes are higher.

The first investment before you launch your business could reach $2000. Closing and moving your business will cost you a lot of money.

These are the pros and cons of establishing a startup in India. Let’s move on to the franchise business in India.

Franchise business in India

A company or organization that has been granted a license by one company to use another’s brand name is known as a franchisee. The franchisor (the original firm) grants authorization to the franchisee (the new business) to market its products or render its services under its brand in a different location. The main advantage of having a franchise business in India is that it removes the need for a business to worry about building a brand or raising finance for a venture because these tasks are already handled by the existing business whose franchise is being bought.

Let’s talk about the pros of franchise business in India.

Pros of franchise business in India

Brand recognition

If you were setting up a business from scratch, it would take some time to develop your products and customer base. On the other hand, franchises are great businesses with a ready market. People will be aware of the brand, the services you offer, and what they can expect if you launch a franchise business in India with this easily recognizable logo. Because of their success, they earn more money.

Lower marketing costs

One of the main advantages of buying a franchise business in India is that you won’t incur any marketing expenses because the customer base is already aware of the brand. Businesses spend millions of rupees on marketing and branding, which accounts for how quickly their products or goods are sold.

You’ll be your own boss.

Being your own boss is one of the most appealing benefits of owning a business. When you start a franchise business in India, you may manage your own business while gaining access to the franchise’s knowledge. You can even set your own hours of work, despite the fact that running your own business is difficult.

Pre-existing customer

In addition to having a well-known brand, franchise businesses also have a strong customer base. Regardless of the fact that it is the first franchise location to be created in a small town, customers are already familiar with the brand thanks to TV commercials or travel.

Cons of franchise business in India

Higher franchising fees

Although buying a franchise can allow a business owner to start making a lot of money right away, achieving this is not always easy. A significant amount of money must be given to the brands in order to get a franchise. A franchise business in India can be purchased from a variety of domestic and international companies for millions of rupees.

No room for creativity

There is no room for innovation for the person who buys the franchise business because the franchise business already has a brand face, logo, style, or method of doing business. There are restrictions on where you can work, what you can sell, and the suppliers you can collaborate with because of the business model of any franchise.

Reduction in brand value

Corporate scandals, health issues at another franchise location, and other situations could leave franchisees helpless and endanger the value of their brand in the market. People avoid visiting such brands as a result, since they have a history of declining brand value.

Limited capacity to adjust

When you become a franchisee, you are required to abide by the terms of your licensing agreement. You can’t change things like the goods you sell, the store’s aesthetic, or the staff’s dress. With a franchise, there are fewer possibilities for business customization and expansion.

These are the pros and cons of a startup and franchise business in India. If you want to start a franchise business but are concerned about the high cost of acquiring a franchise, the best idli franchise in Mumbai, Naadbramha Idli, offers a food franchise for less than 15 lakhs in Mumbai. It is one of the most profitable food franchises in Mumbai.

Contact Naadbramha Idli today to know more about the franchising opportunity.

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