So, you want to be a business owner? You’ve taken the first step by making the decision to move toward employment independence. But now what? Before you start your own business, consider the many benefits of becoming a franchise owner of an established brand.
When starting any business, getting the word out is one of the first (and most difficult) steps toward success. By owning an established franchise, your potential customers are more likely to be familiar with your brand. Unless you have a large marketing budget that most small businesses cannot afford, the visibility of a franchise will ultimately increase at a faster rate than a startup.
In addition, franchises have tried most marketing opportunities and can offer their experience with case studies that guide you into proven marketing techniques. This removes the trial and error aspect of marketing your business, which can save thousands of dollars and get you to the path of earning revenue faster.
Many potential franchisees focus on brand recognition as the key/only benefit for considering a franchise, however, in the end, that may pale in comparison to the comprehensive support functions that the franchise provides – such as;
Training and Software
One of the most valuable features of investing in a franchise business is that, with few exceptions, you don’t need to have a background in the business you are interested in – they train you to run it! Every franchise will provide structured training programs prior to you officially opening your business and throughout your business ownership journey; the length and depth of that training is dependent on the complexity of the business model. Along with training and mentorship opportunities provided by franchises, many also develop and provide proprietary software to help you run the business that you would otherwise have to define as needs are identified, and pay for out of pocket to receive the same kind of similar (and potentially subpar) tools that are necessary to track and scale a business.
Starting a business of any kind has some financial risk, but owning a franchise provides a better chance of long-term security. Yes, there are initial investments and costs that have to be paid to start a franchise, but franchises have a higher success rate than startups, and the savings from their guidance and experience is priceless.
Let’s imagine you’re able to invest, but haven’t owned a business before. Franchises can offer guidance on everything from human resources to legal concerns. These investments at a startup can cost from hundreds to hundreds of thousands of dollars without generating an initial return on investment, which is why the structure of becoming a franchise owner has a greater potential for success and higher reward overall.
In addition, many franchises, as part of their HQ support, actively seek to obtain government and other national contracts, both as a revenue stream and for favorable vendor pricing. The savings from economies of scale and guaranteed-or-almost guaranteed business from these contracts can be significant.
In summary, when you’re considering the purchase cost of a franchise, it’s important to put it into the perspective that the franchise is outlining for you what it will cost you to open their franchise model, including the franchise fees, etc., and that you understand its value and potential for savings and increased ROI versus going out on your own.
Franchise Business Source strongly recommends going through our discovery process that includes coaching and consulting to help you determine if franchising is right for your entrepreneurial goals. We have access to hundreds of franchises and plenty of hands-on experience to help you find the right type of franchise for your personal and professional needs. Contact us or call us at 614-768-3884 to schedule your free consultation today.