Starting a business is an inherently risky venture, which requires extensive planning and research before taking the plunge. One of the most crucial questions you must ask yourself is whether you want to launch your own business or buy a franchise. Owning a franchise, as opposed to starting a business from scratch, can prove to be a lucrative business solution. While it is no guarantee of success, franchise businesses are appealing options because they generally have impressive success rates with minimal risk of failure that comes with starting a new venture.
To help you learn more about why buying a franchise could be a rewarding option, take a look at just some of the widely recognized advantages that franchising brings for aspiring business owners.
Established Brand Recognition
One of the most significant benefits that franchisees receive is a recognized brand name and an established customer base to work with from the very beginning. When franchising a recognized business with a proven reputation, franchised businesses can decrease the risk of failure by leveraging the well-known trademark to their advantage and bypass a lot of work needed to market a completely new, unknown brand. By investing in a franchise, people will know what your business is about, what products and services you have to offer, and what they can expect.
In contrast, starting a business from the ground up requires strenuous efforts to build your brand image and clientele. That demands lots of strategic marketing tactics, investment, and patience before you start attracting customers.
Franchisees receive ongoing support and assistance from the franchisor, which is directly interested in the franchisee’s success. A major stumbling block for many entrepreneurs is that they do not have the relevant experience to deal with the several management and training challenges that business owners face when starting. Most franchisees receive a turnkey business operation from the franchisor, where they are provided with everything they require to operate the business effectively and efficiently.
Franchisors will provide extensive, continuous training in all major areas, grant access to the detailed operations manual the franchisee needs to operate the particular business model, and give valuable advice on business-related issues. Furthermore, franchisees will also receive supplies and equipment from the parent company. That sets the franchisee up for seamless operations from day one.
More Buying Power
Buying a franchise enables you to benefit from and tap into the network of deep-rooted relationships the franchisor has developed with trustworthy suppliers over time. Since the franchisor can negotiate better deals in wholesale, you can purchase goods and supplies at a comparatively lower cost due to the parent company’s collective buying power.
As a standalone business owner, you are likely to pay more money per item because of relatively small orders. This lower cost of goods means lower operating expenses, ultimately resulting in more cost savings.
It is common for most entrepreneurs to struggle to attract funds to start their businesses. While they may acquire some loans from banks or investors, it does not come easy due to the strict criteria and risk mitigations measures put in place by creditors who are reluctant to finance new businesses. These often become an insurmountable obstacle for a would-be entrepreneur
In the case of acquiring a franchise, securing a loan from banks and lenders at softer conditions to finance your franchise becomes a lot easier due to the trusted brand name, reputation, and proven business concept of the parent company.
No Experience Needed
Buying a franchise enables you to work in an industry that intrigues you, but without the risk that is synonymous with starting your own business. You do not need any business experience to operate a franchise, as the franchisor will take care of all that you need to hit the ground running. The added benefit is that you always have a support system to look towards for advice or guidance.
You Are Your Own Boss
Franchising provides you with an opportunity to run a business independently, even if you possess little idea about how to start it. As your own boss, you can craft a flexible schedule for yourself, have more autonomy over your career, and even opt to work from home if that is what suits you.
The concept of franchising has piqued the interest of many ambitious entrepreneurs, owing to the numerous benefits franchisees can enjoy. If you have been contemplating where to buy a franchise or start your own business, it is evident that franchising is much more likely to pave the way for success rather than going at it solo.