If you are ready to start a business but don’t want to go at it alone, here are some Good Reasons to Consider Franchising and some advantages of buying a franchise. Franchising can offer you a business opportunity with less risk, more reinforcements, and proven results.
What Are The Advantages of Buying a Franchise?
Many people launch their own business idea and succeed. But many don’t. Depending on which statistic you look at, about 50-80 percent of new U.S. companies fail in their first five years.
Franchising, on the other hand, comes with a roadmap. Everything is laid out for you, from how to ship a package, or how to make a pizza, to how to stack the cereal, the guidelines are there so that you have the best chance for success. You get to see the operations manual before you start to run the business. This is a huge benefit opposed to having to write your own plan.
Here are some other reasons you might want to consider franchising instead of starting a brand new business of your own:
A franchise often comes with proven brand recognition. Brand building takes time and money, which the company is responsible for, and your franchise location will receive those benefits. As a franchisee, you will be responsible for running local advertising and local marketing support. But when you are on your own, building the brand reputation of your business is solely up to you. Depending upon your market, advertising can be a considerable investment. A recognized brand makes an immediate connection with consumers, something that is often a big challenge for a new company.
Maybe you have worked in the type of business you are considering opening, but have you received formal training? Franchisors offer some level of training to all incoming franchisees. This can range from webinars to award-winning training programs. Make sure you ask what kind of training you will receive at the beginning and ongoing. Some organizations offer training that will bring you into a classroom setting, as well as into store locations for hands-on training. Most likely, your training will last over many weeks before you open your franchise.
When you start your own business, you will need all the support you can get. Depending upon the type of business you want to open, employees, family, and friends supporting you may not be enough. A franchise opportunity offers backup. The type of support you will receive as a franchise may vary, so ask a lot of questions. Most franchisors offer location/real estate support, equipment purchasing support, legal support, and that ever-important marketing support. Also, many successful franchise operations have regional consultants who will visit your location to offer support, while ensuring your location is in line with brand standards. Ask the right questions and find out about all the support options available. For example, does the franchisor offer customer service or social media support?
And last but not least, meet and interview other franchisees. Talk to as many franchisees as you can. Talk to franchisees in different types of operations so you can learn which type of business is best suited for you. Talking to a successful owner, learning both the great and the challenging aspects of the business, is a great way to find out more about the business.