If you’re looking to start a business, but are weary of the risks and responsibilities that come with it, consider investing in a franchise business instead. A franchise is essentially an already established business that can be purchased by investors, who benefit from the reputation and brand recognition of their chosen franchise. These 8 advantages of investing in a franchise can help you decide if it’s right for you!
Why do people buy franchise businesses?
Franchises offer a great opportunity for people who want to start their own business but are not really interested in operating a specific type of small business. Buying a franchise gives you access to an established brand name and often comes with training, support and marketing material. Some popular franchise opportunities include Papa Murphy’s Pizza, Curves Gym and Car Hop Drive-In Restaurants. If you want to buy your own franchise, it’s important to be sure that it fits within your skill set or at least doesn’t require skills that can only be acquired through expensive classes or experience. Also make sure that you have enough startup capital; franchises for sale tend to be less expensive than independent businesses because you’re buying into an existing brand.
1) A Pre-built Business
It’s much easier to be successful with a franchise than it is starting your own company. When you buy into a pre-built business, you don’t have to worry about getting everything up and running before you start generating revenue; someone else has already done that for you. Your goal at that point becomes reaping rewards from their hard work! Additionally, franchises often come with heavy backing from their parent companies—in some cases they even provide startup capital—which gives new owners a financial safety net if things don’t go as planned. For people who are afraid of risk, buying into an existing brand may feel like less daunting way to get started than venturing out on your own.
2) Less Start-Up Time
One of my favorite advantages to buying a franchise is that you have less startup time and money invested into your business. By purchasing a franchise, you can avoid having to come up with original ideas, content, goods or services; most of these things will be provided for you by your franchisor. You’ll also often get marketing support and access to training. Many people are too hesitant about starting their own business due to fear of failure or high startup costs. However, by buying a franchise, it may alleviate some concerns about these two factors; if one location doesn’t work out for whatever reason you aren’t out on your own without any backup plan!
3) Immediate Brand Recognition
When you buy a franchise, you’re buying into an existing brand that is proven to succeed. A well-known brand means instant recognition for your company and can help attract customers. Having an established brand also allows you to focus on growing your business instead of worrying about how to market yourself. For example, Subway has more than 44,000 franchises worldwide, meaning you can start generating revenue quickly instead of spending your time trying to get people interested in what you’re selling.
4) Guidance During the Startup phase
Having a business plan is great, but it doesn’t necessarily mean your company will succeed. Even if you do have sound plans and goals, there’s still some important things you need to consider before starting up. For instance, how much money are you willing to lose at first? How long are you willing to wait for success? And what can you do as an entrepreneur that will mitigate risk and help your business stand out from competitors? The good news is there are answers for these questions; many franchises for sale provide guidance during their start-up phase. Talk with local franchisees about their personal experiences and find out if they offer training sessions or an orientation program for new owners.
5) Access to a Shared Marketing System
Buying into a franchise gives you access to all that franchise’s marketing systems. For example, if you buy into an established brand like McDonald’s or Dunkin Donuts, you can use its well-established network for online and offline advertising, public relations, sponsored events, and so on. Even if you buy into a smaller franchise that’s still expanding, it should have solid marketing systems in place that you can get started with right away. That way, your costs are lower and there is less of a learning curve than when starting from scratch. You’ll also be able to share in any profits made by those marketing systems after they've been used over time to promote other franchises' businesses.
6) Access to support and resources
Buying a franchise can be scary, especially if you don’t know what you’re doing. The best franchises have entire staff teams dedicated to supporting new owners and walk them through every step of running their business. If your chosen franchise is going to set you up for success from day one, then it may be worth putting down an extra few thousand dollars for that kind of support. These resources can help inform your decision about which route is right for you when it comes to buying a franchise.
7) Valuable Lessons from Past Franchisees
One big benefit of owning an existing franchise is that you can learn from past mistakes and successes. Existing franchisees often have valuable insights to share, especially if they were on one side or another of an important decision. You’ll also see what components are working well or not so well for other people and know what you should look out for when you purchase your own franchise. If you decide to buy an existing franchise, there’s no question you’ll learn more—and probably more quickly—than if you started from scratch on your own.
8) Franchises are a good option for new entrepreneurs
Why would you start a franchise? If you’re looking to get into business but don’t have any experience, starting your own company can be quite daunting. It can be hard to know where to begin or what you need to do. A big advantage of starting as part of a franchise is that there is already a road map. All franchises go through an application process and there are usually certain standards expected from new owners, like financial capabilities and relevant experience. That means that, if your application is successful, you can rest assured that there will already be some solid foundations in place for your own company.
What are you waiting for?
Perhaps you think, Well, I'd love to own my own franchise, but I'm not sure if it's right for me. Or maybe you're an existing small-business owner who thinks franchises are something that only the rich can afford. In either case, we want to make it perfectly clear just how affordable franchising can be. Sure, some high-profile brands like Subway may cost hundreds of thousands (or even millions) to buy into — but there are still plenty of opportunities out there that won't break your bank. You can get started with as little as £10,000 and build a solid foundation upon which to grow your new brand while enjoying some major advantages over going it alone.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes