Lower Risk and Maximize Success with the Franchise Business Model
Making a decision to own a business is not an overnight decision. It takes research and care to analyze the risk and reward of starting your own business from the ground up.
To mitigate the risk, franchising combines the upside potential with business ownership with reduced risk of failure.
Explore a New Industry with No Training or Experience Needed:
Buying a franchise doesn’t require a lot of experience, but more than that, it requires a lot of passion for your work.
Franchisors create support materials, training and guidance to you as a franchise owner. Throughout your time as a business owner, your franchisor prioritizes your success by providing ongoing marketing, management training and general support.
Franchisors have already done the necessary research to know what marketing and advertising strategies are successful.
Once you join a franchise, your learning the secrets of knowledge and industry is instantly accelerated.
Comparatively, without franchise support you would otherwise work to piece together industry knowledge on your own know how over long periods of time making possible costly mistakes along the way.
Because business models and marketing strategies have already been tested and deemed successful over experimentation, both locally and many times nationally or globally, you are able to enter into a franchise business that is already known.
The franchise success has already been proven, which means mistakes have already been made and learned from.
Lower risk increases ability to get a business loan for a franchise compared to an independent business loan. Lenders know investing in a franchise is less risky.
You become part of an established brand that has a vested interest in your success and will support you to hurdle risks.
Three things companies need to be in order to be successful in brand recognition are:
When you buy a franchise, you don’t have to worry about creating the brand recognition, you can be confident that the franchisor and brand itself has already done this.
That means, when you become part of the business, you are already a step above the competition.
Customer loyalty and retention is critical in any industry. Because a franchise typically has been around for years, customers recognize the brand.
Customers are 59% more likely to interact with and buy from a brand with which there is familiarity and reliability.
Let’s consider the hurdles of owning your own independent business, especially that of obtaining your first customers and building a reputation with them.
Creating awareness and recognition can take a lot of time, money, and stress if you are on your own even if you have experience in marketing.
Franchises have already blazed the marketing and branding trail before you by building a familiar brand name. Buying a franchise taps you into the power of an established and familiar brand which jump starts your sales.
Cumulative Purchasing Power
Loneliness is a huge mental challenge today and it is compounded when you are working all hours of every day to make your own business succeed.
When you purchase a franchise, you become part of a team and instantly have the advantage of joining an established pool of fellow franchisees, customers, and important relationships with suppliers.
This means material costs are reduced and supply chain is simplified, due to collective buying power.
Franchisors support their franchisees by prioritizing initial and ongoing education, onboarding tools, and emotional backing. You will receive help with selecting a location, construction, design, training, financing, and many more exciting bits of knowledge and wisdom.
“We’ve seen that adding in more technology and marketing and more services to our franchisees has been a better way to grow. As they’re using our products and services, support technology, call center, and lead generation devices, they can manage themselves in a way where they can pull themselves out of the business, become atonomous, and be successful.”
-Chad Jones, CEO of Five Star Bath Solutions
Some franchisors also help with obtaining loans and other financial opportunities. Oftentimes, the franchisor offers courses to help you begin as well as continuing training as you become a master of business.
Be a Boss
You will be able to create your own schedule and flexibility since owning a franchise means being your own boss.
Make no mistake, owning any business is hard work, but with a franchise you know how to create balanced harmony in how you split your time in your career with personal time.
You get the gift of success, autonomy, and independence to focus, so you may even choose to work from your home or other convenient locations.
You’ll own your own business and feel independent while also benefiting from the support of franchisors and a network of business individuals and suppliers.
You will have a place to turn to if you need advice or assistance.
When you franchise, you are empowered to achieve success as your own boss while receiving support in marketing, brand recognition, supply-chain purchasing, and onboarding/training of employees to help reduce risk and increase your chances of success!