Startup culture is taking over the modern world and is quickly becoming a popular choice for youngsters. A great place to start your entrepreneurial journey is deciding whether you want to build your own business from scratch - study the industry, do your research, identify your market and its needs. Or you could just franchise! Choose a well-flourished business that has already established itself and take it further.
But how is becoming a franchise owner the safer option? The biggest advantage of owning a franchise is - you are investing in a business that is already tested and proven. The risks related to growth and profit are lowered to quite a good extent, which helps a lot, especially if you do not have previous experience in the business.
Launching your own business from the ground up poses a multitude of challenges, including growing a customer base, building a brand name and reputation, and managing the cash flow without any support or guidance. These challenges can make or break your business, which is why statistically 80% of startups fail within two years of launching.
What if you had hands-on support and an established operational system to kick off your business with? What if you had a buffer to reduce the risk of failure tenfold? This is what franchising offers- a safety net. It is a proven concept that entrepreneurs who invest in franchises with a good business model are more inclined to flourish, as they have the constant backing of established corporations, compared to those launching their startups from scratch.
Apart from the security, franchising provides a myriad of other benefits like:
Expanding Your Horizon
Buying a franchise allows you to work in a field that you have interest, but virtually no experience in. Most franchisors offer extensive and thorough training and support to help their franchisees understand the company’s operations. By entering into an already established brand, you will be privy to the trade secrets, knowledge and experience that would’ve taken a long period of trial and errors to uncover.
Limited Risk
When you purchase a franchise, you are buying an established concept that is successful. Statistics show that franchises have a much better chance of success than independent start-up businesses.
A Recognizable Brand Name
To survive in any highly competitive industry, you need to build a brand awareness for the new company, which usually takes a long time and huge revenue. Investing in a franchise helps you bypass that struggle and allows you to tap into the existing customer base and build up from that. Buying the franchise of an established and reputed brand can provide you with an accelerated path to profitability by bringing in customers and prospective employee pools from day one.
Marketing Strategy
There are a number of marketing strategies required to run a business. The franchisor’s already existing business and advertising strategies would provide you with a head-start to grow your business.
Training and Mentorship
When you buy a franchise, you have a partner offering you a balance between being a leader in your own rights and receiving constant support and hands-on training programs. You also benefit from the franchisor's vast knowledge and experience of launching, operating and growing a business, acquired over years of perfecting a business model.
Connections and Links
As the franchisor has already built strong business relations, you will be able to benefit from these relations. This makes it easier to establish a working relationship to get access to other franchises and conventions. You can also benefit from the franchisor’s collective buying power, thus receiving materials and services at a lower rate.
Investing in a franchise offers a sense of security that no other venture could offer. With the right franchise and business ideas, being a franchisee can indeed be the fast track to success.
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