Starting your own business can be a challenging and daunting endeavor. If you are interested in business ownership butare not sure you want to go it alone, consider the advantages of franchising.
There is a familiar phrase in franchising that sums up the benefits of this fantastic option in nine simple words: “Be in business for yourself but not by yourself.”
The advantage of franchising provides you with an opportunity to invest in awell-thought-out business model with a proven track record, built-in training and support programs, and a wide network of vendors to sustain a solid supply chain.
Franchising is a profitable option with a higher success rate than a business launched from scratch.
Advantages of Franchising vs. Opening a Startup
1. Brand Recognition
One of the biggest advantages of franchising is branding. It can take time to mature and grow a recognizable brand. With franchising, brand awareness is inherited. This is important because the brand recognition that comes with franchising provides an instant customer base due to familiarity in the marketplace. For many franchise owners, that branding is worth the price of investment alone.
2. Proven Business Model
The franchisor has already worked out the kinks by testing the process, development, marketing, and methods. All you need to do is operate the business. There’s no need to re-invent the wheel, so to speak. The franchise has efficient guidelines in place to help you grow your business and achieve success. For a franchise owner, this means the potential of improved profit margins.
Another advantage of franchising is you may find it easier to secure financingfor your business. Financial institutions are usually more willing to grant loans on franchise opportunities because franchising has a much higher success rate than going it alone.
Imagine being handed a step-by-step guide to owning your business. This is essentially what happens when you buy a franchise. The franchisor has a team of experts who will train you on how to run your franchise from start to finish. Guidance includes elements of initial startup,like site selection, construction, software training, inventory, insurance, permits, and staffing, all the way through your grand opening. Many franchisors understand the need for continued education to update franchisees on new technology, new developments, and changes in the industry.
5. Reduced Caosts
Being a part of a franchise means you are part of a larger company,which can provide buying power an independent businesses owner could never imagine. This can often mean steep discounts from suppliers and vendors since they selllarge quantities to many franchise locations. Buying in bulk is an advantage of franchising that a small startup would likely not have.
Promoting the brand is key to the success of any business. Having an established advertising and promotional plan in place eliminates detail work for you. The franchisor has likely already done market testing to determine how to target your audience and what marketing platforms are most effective. While your franchise might have its own dedicated social media pages, there is a national brand campaign to work from that is adapting to customer needs and readily available for all franchisees.
7. Ongoing Support
Having a safety net in place is very reassuring for new business owners. Knowing you have a team of qualified experts available to troubleshoot any problems which may arise eliminates stress for franchisees. You never know what can happen in day-to-day operations. There could be supply mix-ups, computer breakdowns, or staffing issues. That’s not a problem. You’ve got a team of highly qualified business experts at your fingertips to untangle the mess.
8. Exclusive Territory
You will be given an exclusive and protected service area to operate, run, and market your business. As a franchisor, we spend a considerable amount of time in the initial stages working out the territory that will work best, taking demographics and geography into consideration to ensure a new territory is occupied by the franchise’s typical customer base.
9. Higher Success Rate
Generally, franchises have a higher success rate than small startup businesses. When you invest in a franchise, you are already joining a successful brand; and will be surrounded by a network of experts who will provide ongoing support and advice with the intent of making your particular location a success, too.
With a franchise, you’re basically self-employed. Any effort you put into running your business will impact you directlyrather than benefiting someone else. The more you put into your franchise business, the more you get out, which to most will feel far more rewarding and empowering.
As you can see, the advantages of franchising far outweigh starting a business from scratch.
We would love to tell you more about the franchise opportunities with American Family Care, one of the nation’s most established and largest provider of urgent care and accessible primary care.
Click here to get the conversation started.