Business ownership is a dream for many people. The opportunity to be their own boss and to truly build wealth are two of the reasons that becoming a business owner instead of remaining an employee is so appealing. However, starting a business from scratch can be difficult. Investing in a franchise instead can offer several advantages.
1- Everyone Knows Your Name
Building an awareness of who you are and what you do is one of the many challenges new business owners face. When you invest in a franchise, in general, most of your potential customers have already heard of you. You do not have to waste a substantial portion of your time and money increasing brand awareness because it already exists. This extends to any suppliers or vendors that you work with as well.
2- Less Experience Needed
One of the first rules for starting most types of businesses is that you need to have some experience in the industry. When you invest in a franchise, this is not necessarily required. While different franchises will provide different levels of support, you can be certain that you will at least have access to a substantial knowledge base to help you decide how to proceed. You can also choose to invest in a franchise that is essentially a turnkey operation if that is what appeals to you.
3- Lower Risk
When you read statistics on how few new businesses survive the first few years, it can be sobering enough to permanently put you off the idea of becoming a business owner. Of course, there is a story behind every statistic, and there are certainly avoidable errors that a smart entrepreneur can avoid. However, overall, you will face much lower risk with a franchise than you will starting your own company from scratch. You will not have to go through as much trial and error to figure out what does and does not work. Instead, you will get plenty of information about the right strategies that have been tested and proven for success. In addition to failing less often than other businesses, franchises also tend to turn more profit.
4- Benefits of Scale
Volume saves money, and you may have lower overall purchasing costs because you can buy things as part of the larger network of franchises. This would not be the case if you were a single small business trying to make purchases while also keeping costs down. The benefits of scale apply to expanding your business as well. Within a franchise, it can be easier to open up additional locations since you will continue to receive support from the franchisor.
5- Financing Opportunities
Getting the money to start a new business can be a major obstacle. It can be easier to get loans as a potential new franchise owner since you will generally be seen as a less risky prospect.
Starting your own business is never easy, but many of the difficulties can be avoided by investing in a franchise. The structure and guidance you receive will allow you to hit the ground running from day one.
