The path to becoming a boss is not straightforward. The hopes and goals of starting your own business often fade in contrast to the concern and stress accompanying entrepreneurship. However, what if you could enjoy all of the advantages of business ownership while receiving the support and backing of a well-established company? If this sounds attractive, you can, then franchising may be the best option for you.
Franchising enables individuals (or franchisees) to operate their own business with the assistance and support of a larger firm with a track record of success. Of course, this does not imply that launching a franchise is simple or that profits are guaranteed. Still, for many would-be entrepreneurs, franchising offers a less risky but profitable alternative to beginning an independent firm.
Here are five compelling reasons why franchising is superior to establishing a company from scratch.
Franchises provide you with freedom while still providing advice.
Starting a company may be intimidating, but having the assistance of a respected franchise system enables you to take the first confident steps toward business ownership. This is what makes franchising so tempting, and a recent study from the British Franchise Association (BFA) confirms the sector’s growth. Indeed, according to the 2016 study, the number of franchisee-owned enterprises has increased to 44,200. That is an outstanding growth of 14% over the previous two years.
No prior business expertise is necessary to operate a franchise.
A significant advantage of the franchise model is the quantity and quality of training and coaching available. It is in the franchisor’s best interest to invest in its franchisees by providing thorough training programs at the outset and throughout the franchise journey. Franchisees also value this assistance, with 91% of those questioned by the BFA expressing satisfaction with their franchisor. Franchisees should never feel alone when developing and operating their franchise company, which is why ongoing guidance and assistance are always accessible.
Finances may be more accessible.
Financing any new enterprise may be challenging, but finding a franchise may be simpler than funding an independently owned firm. This is because the business plan developed by franchisees may include reliable financial predictions based on the franchisor’s expertise, which simplifies the process of obtaining a loan. A franchise’s past is very reputable with banks and takes the guesswork out of financial planning, which is why franchises are often seen as a safer investment.
And the figures speak for themselves; the BFA reveals that a record 97 percent of franchisee-owned companies made a profit in 2016, with 56 percent reporting that they are ‘very’ or very lucrative.
Brand recognition on the spot
Starting a company is often fraught with uncertainty. However, franchisees may eliminate most of the risk involved with company ownership by associating with a well-established brand. While various franchises will have varying degrees of brand awareness, knowing that clients like a brand that has been successful elsewhere give a much-needed safety net for franchisees.
Franchises succeed at a greater rate than start-up firms.
Starting and running a company is like riding an emotional rollercoaster. The excitement and difficulties are continual, from the highs of hiring new workers to the lows of contract termination. Unfortunately, many company owners will experience failures that cost them money, time, and energy. This may necessitate the sale of the firm in certain instances.
The advantage of launching a franchise is that failure-causing errors may be avoided since the franchisor has already made them (and has learned from them). You will not be required to promote an unproven concept or product in an uncertain environment since the franchisor has already done the legwork for you. This implies that ownership transfers are exceedingly rare for franchisee-owned enterprises, with 95.4 percent of franchisees continuing to own and run the company for the duration of the franchise agreement and beyond.
Thus, you pay a fee when you start a franchise, and the franchisor provides the items, training, and support necessary to operate your firm. It’s a straightforward company concept, and the perks make it an attractive option for aspiring entrepreneurs. However, if you’re interested in being a franchisee, where should you seek franchise opportunities? To begin, Point Franchise is an excellent place to begin. You will have access to all the information you need to make an informed and thoughtful choice about which franchise is the greatest fit for you. Additionally, you’ll discover in-depth articles, breaking news alerts, and guidance from our team of seasoned professionals to help you learn more about franchising and how it can be a good fit for you.