Regardless of your circumstances or intentions for wanting to establish your own business, controlling your own future is a noble pursuit. In fact, 55% of people launched their businesses in 2019 because they wanted to be their own boss, and by 2022, that figure had risen to 60%. Furthermore, 47.6 percent of respondents chose to start a business because they were dissatisfied with their corporate position. According to an SBTA survey, 74 percent of business owners reported being either moderately or very pleased. So for many, the gamble paid off.
The first step in entrepreneurship is to examine the business landscape and decide what type of firm you want to start. Perhaps you’ve tried some start-up ideas and failed, or you’ve considered the eye-opening figure that 20% of new businesses fail in the first year, and 50% of small businesses fail after five years. You want to avoid being one of the businesses that fall within five years.
If you’re considering starting your own business, you’ve probably considered purchasing a franchise, but you’re not convinced it’s the best option. Why spend money on a well-known brand when you may try to imitate their business? That idea, however, does not work for a variety of reasons. If it did, half of all small enterprises would still operate after five years.
A closer look reveals that franchising offers numerous advantages over the sole proprietorship mode that could help you decide if a franchise business is right for you.
Getting Around the Startup Stage
The most challenging stage of running a business is at the beginning, when you must write a business plan, conduct market research, create a minimal viable product, test it, and then scale (if testing goes well, that is). If you buy a franchise, you may skip this step because the strategy has already been tested and proven to be effective. It is now on your shoulders to execute their plan in your market.
Be the Boss
It’s the number one reason people want to run a business, and owning a franchise allows you to do just that. In addition, being the boss allows one to create a more flexible schedule and a new level of control over one’s career path.
As the phrase goes in the franchising industry, “you’re in business for yourself, not by yourself.”
Simply said, one of the advantages of franchising is that you own a firm with a support structure to which you can turn when you need it the most. Because there is already a previous record of success, you will receive something close to a company blueprint or method to follow that can deliver successful results on a scaled, consistent basis.
A New Industry and Career
Perhaps you want to promote a better work culture that is more in line with your family values, or the monotony of a desk job has bored you, and you want to move into a more hands-on field. There are numerous reasons why people pursue a new business or career but are unable to do so because the risks seem too high or they lack the necessary expertise or training.
One of the most beneficial advantages of franchising is that the model allows you to work in an area that interests you but in which you may not have prior work experience. To guarantee their franchisees are fully prepared, franchise businesses provide substantial assistance and detailed training programs. The purpose is to help entrepreneurs comprehend the company’s operational model, industry, and system. When you join an already established brand, you avoid years of start-up headaches and the stresses of creating a knowledge base through trial and error.
A Scalable Business Model
As previously said, franchisees can begin mid-stride, avoiding much of the ramping up time responsible for most small business losses. People frequently join a franchise because they believe in an already proven business model, which can help minimize the chance of business failure. The franchise’s originator has been in business for many years and has endured difficulties, adversity, and blunders, all of which have been remedied to reduce future problems for franchisees.
This is not to say that franchises will not experience challenges or that they will not have to work hard to create revenue and overcome difficulties. However, franchise brands are more likely to survive ten years, compared to 70% of small businesses that fail in that span. This often gives entrepreneurs more confidence in the franchising business model.
Built-in Brand Recognition and Marketing Support
Brand recognition is an elusive and immeasurable commodity. The idea is to create favorable brand associations and have customers think of your company, values, and services with a single glance.
The most apparent advantage of franchising is obtaining a well-known franchise trademark, which may attract consumers without requiring additional work if the brand is popular in the franchisee’s market. Starting your own business means starting from scratch, which means you must create and promote brand equity through marketing, advertising, and SEO. Driving brand recognition adds considerable time and money for an independent start-up to attract new customers and develop a good brand connection.
As a result, even if a franchise brand is new to a market, franchise brands offer advertising and marketing assistance and benefit from existing marketing research and access to valuable data and materials such as signage, videos, imaging, and a variety of other assets.
Access to Technology, Work Methods, and a dependable Supply Chain
After entering the franchise network, the new franchisee swiftly acquires the brand’s knowledge and technologies that have been produced and fine-tuned through the years via research and development. As a result, a new franchisee avoids common company launch pitfalls, gains access to a proven supply chain and develops a business plan. In essence, this decreases the likelihood of bankruptcy and significant damages due to inexperience. The result is a shortened development period for a business unit to achieve operational excellence.
Assistance with Support and Training
Entrepreneurs frequently confront challenges when starting a sole proprietorship since they lack the experience to respond to specific conditions. A lack of business and process management knowledge will cost significant time and may disrupt cash flow to tackle any specific difficulties. Most business owners would benefit from an experienced entrepreneur’s learned expertise and the ability to directly interact with them to obtain guidance on the business issue at hand.
On the other hand, a franchise brand is directly engaged in the franchisee’s success, and, as a result, franchisees are regularly supported by the franchisor. The finest franchises give their franchisees an extensive support network, including guidance on business-related issues and access to comprehensive training modules that cover the organization and administration of company processes.
Franchisees have the opportunity to own a business without feeling isolated.
Financing is becoming more accessible.
Aspiring entrepreneurs frequently struggle to secure the necessary funds to establish a business. Stringent creditor criteria and risk mitigation measures may overwhelm a potential business owner. Lenders, on the other hand, consider the track record and reputation of a franchisor when deciding whether or not to lend money.
Banks and investors may view a franchisor’s history and reputation as less risky than an unproven business concept, allowing them to offer softer conditions and make it easier to obtain an initial investment.
Last Thoughts
Many of the same characteristics apply to purchasing a franchise to starting any other business: a passion for the industry or lifestyle, a business strategy, a team, organizational tools, finance, and so on.
A franchise investment streamlines those processes by providing access to substantial expert training, equipment, marketing assistance, and an ongoing support network, allowing you to succeed.
Also Read: 4 major reasons to hire virtual assistance for new franchise business
