So Why Buy a Franchise Business?
Many people ask me why they should think of buying a franchise when they can do the same thing on their own, and the answer is … Yes, you can, but, can you compete as well and ramp up as fast and avoid the mistakes? To be clear not everyone is meant to be a Franchise owner.
I got to thinking about why you benefit from buying a Franchise and here is the short list.
1. The safest path to Entrepreneurship is the franchise system which allows first-time business owners to avoid the traps and mistakes of starting a business. These can be from marketing to sales to accounting to networking to existing national accounts and a brand that is established or growing. Question, how long would that take to do all of that on your own?
2. The Investment is a lot safer. The failure rate is much lower, the investment is a lot lower, and the opportunity can be more significant depending on the choice in selecting a franchise. It also is in most cases a highly saleable asset.
3. Personal and professional development. Not often is this thought of as an advantage, but, there is much you can learn about business. As you appreciate the value of what you have grown. Investing in your own business can reap a much bigger reward than getting an MBA. I recently had a family purchase their son a business. The parents deemed there was much greater learning value for the son in running the business. I remember chuckling when the investing father told me it would be his experiential MBA. As a side note this business is thriving and growing, and the son has repaid his father the investment and looking to open a second territory.
4. It is easier to get funding. Banks and lenders like a proven system and a proven franchise business plan. They know it success chances are much higher and this way less risky.
5. Start-up cost can be less. Remember you are buying a proven system, and your job is to apply the model and to work at it.
6. A more Flexible Lifestyle. Do not be confused about this, you still have to work hard and drive the business but the decision you make to attend a family event or work late or not, is yours and your schedule is yours to run. You never have to answer to the boss because it is you.
7. Training and support and direction become cornerstones of the franchisor's commitment to your success. Remember by being fully invested in your success and knowing there are long term royalties they may obtain from helping you grow the business: these factors far outweigh the money they may make on the franchise fee. Another reason why franchising can be an exciting entrepreneurial partnership.
8. Franchising is a regulated industry and as such the franchise companies must comply with the laws around franchising and they are held accountable for the promises they make. They are required to disclose to the buyer how the business operates. This eliminates a lot of surprises generally associated with a start-up business.
9. Pride of ownership. It is nice to say, I own this or I built that, and this is my successful business. Your chances improve so much to be able to do this in a franchise.
10. In business long term. The percentage of people who are still running and growing and succeeding in their franchise businesses is significantly higher than a grassroots startup.
When you step back and truly understand franchising, you might ask a different question like how do I learn more about this broad business category and where do I fit in. That is what I do.
Highlight & Click the MORE INFO link below, and I will reach out to discuss how to do this and provide even more details.
With Utmost Respect,
Joe White