Why Should You Start a Franchise?
Franchising allows large companies to expand further, giving people the resources and power to run their own businesses. If you’ve ever thought about starting a business, here’s why you should start a franchise.
Top Reasons Why You Should Start a Franchise
There are many reasons why you should start a franchise, here are a few examples of why it is a good idea.
Skip the Painful Startup Stage
Being your own boss sounds great. But launching your own business means you’ll have to jump through the hoops of creating a business plan, performing market research, product testing, and more.
The idea has already been tested and proven to work with a franchise. If there’s any doubt, visit a franchise location and see yourself. Starting a franchise allows you to skip over the initial startup stage and launch the business.
Lower Risk
Starting a business is risky. Most new businesses don’t live past their fifth anniversary. Even successful businesses have to undergo periods of experimentation and loss, which can take a major bite out of your profitability.
One of the top reasons you should start a franchise is that franchises offer the stability of an established company and the guidance to help you navigate the challenges that might arise. A franchise represents a tried-and-true plan for the future, taking the guesswork and risk out of running a business.
Easier Access to Funding
The old saying is true: It takes money to make money. But securing a loan from the small business association (SBA loans) can be frustrating, especially when your lender expects to review your business credit score, business plan, financial documents, and other key pieces of data.
Even when you secure a loan, you may still need to provide a personal guarantee that holds you personally liable for paying back at least a portion of the loan.
However, the SBA also offers loans aimed at franchise owners, which are usually easier to obtain than other types of SBA loans. If you decide to open a franchise, you may have easier access to financing than if you were starting a business on your own.
Easier Access to Equipment
One of the reasons your business may need money is to purchase equipment, whether it’s a point-of-sale (POS) system or major kitchen appliances.
Most franchises have standard equipment requirements, but that usually means you can purchase this equipment directly from the parent company at a reduced cost. Once again, this takes the guesswork out of the setup process and helps you get on your feet and open your doors quickly.
Instant Name Recognition
The most successful businesses become “household names.” They’re the type of company that virtually every American consumer is familiar with and perhaps even visited at one time or another.
Building your own brand is possible, but it takes time, repetition, and careful planning. Depending on your industry, for example, you may spend a large percentage of your time trying to help your customers associate “Joe’s Place” with a particular type of cuisine.
Why not simply start by aligning yourself with a household name? A franchise gives you the recognition (and the credibility) of the brand you represent, which can go a long way in your marketing efforts.
Assistance with Marketing Materials
Solo entrepreneurs have to conduct their own market research and marketing campaigns. The results can be hit-or-miss and will invariably take a chunk of your operating costs.
On the other hand, franchises have already performed diligent market research and have crafted promotional materials to reach their customer base. Large companies also promote their business through nationwide broadcasts on TV, radio, and online campaigns. Depending on your parent company, you may still need to invest some of your operating budget into marketing materials. Still, the cost will be minimal compared to creating a marketing plan yourself.
Standardized Training Options
It’s okay not to know what you’re doing exactly. Most franchise companies will provide training options to get you started earning money as quickly as possible.
These training options can be particularly important once you start hiring employees. The standard operating procedures will streamline your onboarding process and help you integrate new hires onto your team.
Learn More About Your Franchising Opportunity
Franchise.com has been an industry leader since 1995. Since then, we’ve become the “go-to” place for those looking to seize an opportunity and become their own boss. Are you interested in starting your own business? Contact us today, and learn more about why you should start a franchise.
