By Martin Kove
You might be surprised to find out that buying a franchise could be the smartest investment you’ve ever made. Here are 5 reasons why buying a franchise could be your best investment yet
What is a franchise?
A franchise is when you buy into an established business that uses company trademarks and practices. This allows you to utilize what has worked for them in other locations, as well as potentially reduce risk by taking advantage of an existing advertising budget and customer base. In addition, franchising allows you to expand your business, often with less financial risk than starting something from scratch. You can’t build a McDonald’s or Jamba Juice—but if you buy into one, all of their trademarks, processes and customer bases will become yours automatically. Franchises are purchased on a fee basis; what they charge is dependent on many different factors including royalties (which they make off of each sale), length of contract and price per unit sold. There are many reasons why franchise businesses are such popular business investments but below we will list the 5 main benefits of owning your own franchise business instead of going it solo.
● Franchises have higher success rates
There is no doubt that franchising has become one of today’s most popular business models. People are more comfortable investing in something with existing brand recognition, and their trust isn’t misplaced. The International Franchise Association (IFA) estimates that 92% of franchises survive at least their first 5 years, whereas only 50% of independent businesses do. With franchises, you have access to an established business model that has proven its value over time. You can replicate it quickly and increase your chances for success because others have already done so.
● Franchises are not as expensive as you may think
Purchasing a franchise is an expensive purchase, but it can save you money. Purchasing an existing business allows you to skip many of the start-up costs that come with opening your own business from scratch. You’ll also have access to proven marketing and operational systems developed by experts—which means less guesswork for you when it comes to operating expenses and success. And if a franchisor does not exist yet, developing one will provide you with some economies of scale in terms of legal fees, marketing fees and so on.
● Instant brand name recognition
When you buy into a franchise, you’re getting instant name recognition for your business—something that can take years to cultivate on your own. It’s especially advantageous if you plan to start out in business in an area where you don’t have any connections or established customers. Buying into an existing brand is always going to give you easier access to customers than trying to build one from scratch and will grow you a customer base faster.
● Tried and tested business model
If you’re new to entrepreneurship, or even if you’ve been at it for years, opening up a business from scratch can seem daunting. By starting out with an existing franchise model, however, you will benefit from proven methods and procedures that have been tested and tweaked over time. For instance, as well as having to research and decide on everything from which industry you want to work in to how to price products or services based on market conditions, when launching an independent company—you will also need to spend some time doing market research of your own. But if you purchase a franchise instead, then all of that work has already been done for you.
● You become your own boss without going it alone
There’s something incredibly freeing about starting and running your own business, but it can also be intimidating. Franchising provides you with a guide to keep you on track while you maintain full control over important business decisions like product mix, marketing campaigns, hiring practices and more. In essence, franchising helps you enjoy all of the perks of starting your own business without losing any of its benefits. The trade-off is that you work under someone else’s brand name for a small fee or royalty; however, most would say it’s well worth it for a proven system that has time-tested success as well as an established client base to jumpstart your new venture.
Where to find more information about buying a franchise?
There are many places where you can learn more about the benefits and success stories about people who have bought a franchise and achieved their dreams. If you are looking for a reliable source of free information to learn more about franchising and buying a franchise use franchise magazines and franchise directories. These sites provide some amazing advice in their articles and it’s completely free to read and learn from. The two best websites for free information around franchising are called Infinity Business Growth Network & Franchise UK is an amazing resource as its one of the largest franchise directories in the world which provides a huge amount of free resources to help anyone new in to franchising if you want to start your franchising journey visit franchise-uk.co.uk for more information.
Where to browse franchises for sale?
Franchise opportunities offer a fantastic option for would-be business owners who have experience, training and good credit but are short on start-up capital. In many cases, you can purchase or lease an established business with low startup costs, as little as $50,000 and often much less. And with access to training, marketing support and systemized operations processes, purchasing a franchise gives you what it takes to succeed in a world where some small businesses fail within their first year of operation. Now to answer the question of where to browse these franchises for sale. For this you can use an online franchise directory these websites allow you to request information around a franchise of your choice from the comfort of your own home. Firstly I recommend you to check out a franchise directory. Another option could be to check a business for sale directory since sometimes these directories also advertise franchises as an add on.
Would buying a franchise be the right decision for you?
Maybe you’ve always wanted to start your own business. But perhaps you’re nervous about taking on all of those risks by yourself. After all, it seems so much safer to just go to work for someone else, right? Maybe not. Buying a franchise can put you in control without going out on a limb. And when it comes to financial security, there are few options as safe or profitable as franchising—so don’t dismiss them prematurely. Make sure that purchasing a business opportunity is something that might work for you before ruling it out completely.
Conclusion
As with most investment decisions, there are some risks involved in purchasing a franchise. But if you do it right, you can reap huge rewards. Purchasing an existing business can offer many advantages to launching one from scratch and gives you more options for getting started in business than working for someone else or starting out on your own. Take time to weigh all of your options before committing to a decision about where to get started in business, but don’t ignore franchising—it may offer exactly what you need to build a solid foundation from which to launch your new career as an entrepreneur.
TELL YOUR FRIENDS ABOUT CITIZENS JOURNAL Please keep us publishing – DONATE
