With jobs less secure and working hours longer than they used to be, it’s easy to see why some people choose the entrepreneurial lifestyle over the conventional nine-to-five.
However, despite the allure, there is still a lot of hard work involved in setting up your own venture. If you want to be your own boss, but the prospect of starting a business from scratch sounds like an overwhelming endeavour, then franchising could well be the opportunity you’ve been searching for.
- Proven track record
When you buy into an established franchise, you are also buying into a proven concept and track record.
The initial hard work has been done for you. Most franchisors have already developed a successful business and ironed out the kinks before deciding to franchise their business.
When buying a franchise, you should be given financial information about franchises that are already trading, giving you an insight into the business model’s profitability. Any franchisor worth partnering with will also put you contact with existing franchisees before you make any contractual and financial commitments.
- Brand reputation
A business is only as good as its reputation. And this intangible asset is one of the most advantageous qualities of a good franchise.
It can take years for a business to establish themselves and gain a good reputation and solid customer base. However, investing in a franchise skips this hurdle and many franchises have built brands, nationally or globally.
- Training and support
Many franchises have tried, tested and successful training programmes in place. Training and support should – and does, with reputable franchises – start from before your first day of trading and continue throughout your entire time as a franchisee.
A franchise will also provide training and assistance in how to market your business to effectively attract and retain as many customers as possible.
Your first major marketing challenge will be the grand opening of your branch. Franchises should have staff on hand to help you with budget allocation as well as plans and ideas to get your business on the road to success.
- Securing and fitting out premises
Many franchise companies also help you find a site and negotiate the best possible deal.
They tend to provide assistance with the design and layout of premises too, selecting qualified and trusted contactors to do the build-out.
You can expect help with procurement of equipment and furnishings to help you get your new business up and running quickly and efficiently.
- Lower risk
Research has shown that only 7% of franchises fail within the first three years, as compared to 90% of non-franchised start-ups.
Although the cost of buying a franchise is usually higher than buying a regular business (due to franchise fees), one of the most appealing reasons to buy a franchise is the reduced risk of failure.
The bottom line is that a franchise is more likely to succeed than a start-up due to the security afforded by investing in a proven and established concept.
Think of it like buying a business in a box: the business model is there, you just need to work hard and follow the formula that led to success for other franchisees in the franchise network.