If you’re like many ambitious individuals, you probably find the idea of starting your own business extremely appealing. However, you may also have reservations about the uncertainties and challenges involved with starting your own business. However, you can get a jump start on your entrepreneurial journey by exploring franchise opportunities available in your area.
Franchising offers a combination of the freedom to run your own business with the support, proven systems, and brand reputation designed to promote success. Following are five solid benefits of investing in a franchise instead of a startup.
1- Tried and True Business Model
Franchisors have already developed and refined their business models through a succession of trial and error to identify what works, what doesn’t, and what advertising strategies are most effective at reaching their target consumers. As a franchisee, you’ll receive access to a proven system, reducing the risk of failure compared to starting a business with an as-yet untested concept.
2- Established Brand and Reputation
Franchises come with a ready-made reputation, which means that you’re likely to be starting out in business with a built-in customer base. Keep in mind that one of the reasons to invest in a franchise is because the company has built up a significant amount of consumer trust and brand recognition. This means that you’ll have a head start from the moment you open your doors for business. With a typical startup, however, it would be on your shoulders to develop a customer following and build your reputation — and depending on the type of business, this can take months or possibly even years.
3- Training and Support
One of the major obstacles faced by startups is a lack of training and support, but these are typically part of the package when you purchase a franchise. Training covers day-to-day operations, local marketing, customer service, employee training, compliance and standards, and basic business management.
In addition to initial training, franchisees are provided with ongoing support designed to optimize their chances of success. This may come in the form of regular check-ins, updates on best practices, and problem-solving assistance. Those who go the independent startup route generally have to figure these things out for themselves, often with less-than-desirable results.
4- Collective Purchasing Power
The main reason why franchises are often able to charge less for their goods and services than their independently owned counterparts is that they have optimal collective purchasing power. This leads to substantial savings on inventory, equipment, and supplies. You’ll be able to pass these savings along to your customers, ensuring an appealing and competitive place on the market that’s usually unavailable to startups.
5- Marketing and Advertising
Franchises typically advertise nationally and regionally to promote the brand as a whole, with franchise holders contributing to a marketing fund to support these efforts. As a new business owner, you’ll benefit from effective advertising strategies designed by professionals that most fledgling entrepreneurs don’t have access to. Many startups lack the capital to invest heavily in marketing, which can create a double-edged sword for business owners.
