If you’ve got the entrepreneurial spirit but aren’t ready to start up your own business, you might want to consider a franchise.
A franchised business can offer the best of all worlds: the opportunity to work for yourself, earn a profit quickly, and enjoy a high long term success rate.
Read on for 5 more reasons a franchise may be right for you.
1. Cost savings
It’s expensive to start up a business that may not turn out to be profitable. One of the great benefits of a franchise is you’ll be able to buy supplies at discounted rates from your franchisor – much more cost-effective than purchasing what you need to run a business on your own.
Tip: Remember that franchisees also have different expenses than other business owners, such as royalty fees and contributions to advertising funds.
2. Brand recognition
With an established franchise, you don’t have to hustle to find customers. A recognizable brand name will do half the work for you, as long as you continue to marketing effectively, provide excellent service, and do everything you can to maintain customer loyalty.
Tip: Request a demographic survey to make sure your location isn’t too close to a competitor and has enough target customers to earn a good profit.
3. Proven systems
New business owners develop their own systems and strategies over time by trial and error. It can take years to figure out the most effective and efficient way to operate and maximize profits. When you buy a franchise, you step into a situation where the bugs have already been worked out. You’ll inherit a manual that tells you how to manage everything from marketing to training new employees.
Tip: Make sure you understand the rules you need to follow to stay out of trouble with your franchisor – there will be many to maintain uniformity among each and every store.
4. Built-in support
Buying a franchise is a bit like investing in a business community. You’ll have access to the franchisor and your fellow franchisees, whose expertise can help you learn to run a successful operation. Unlike new business owners, franchisees can tap their support network whenever they have question or need advice. Ideally the franchisor is available to monitor relevant industry changes that can affect profitability so you can focus on running your business.
Tip: Take advantage of the support available to you, including training resources and mentoring opportunities, especially during the transition period.
5. Turnkey profitability
Perhaps the most exciting aspect of joining a successful franchise is the business is turnkey – and that makes it more profitable than other types of business ventures. Of course how successful yours will be depends on how well you follow the rules, put in the hours, and ensure you have happy return customers.
Tip: Before you buy into a franchise, make sure it’s a good match with your own passions and interests. If the opportunity is a natural fit for your personality, skill set, and lifestyle, you’ll dramatically increase your chances of long term success.
Now that you know the benefits of starting a franchise, your next step is the fun part: researching the franchises that might be your next big venture. Before you make any decisions make sure you speak to an accountant to view the financials and help you forecast your cashflow. There are no such things as a guaranteed business, a;ll come with a level of risk.