The Benefits of a Franchise
When getting ready to embark on a new business venture, entrepreneurs everywhere face an important decision: Do I start an unknown business on my own or become part of a franchise? Before making that all-important first decision, here are some things to consider.
A franchise offers turnkey operations.
Statistically, it has been found most businesses fail within the first couple of years after startup. However, a prosperous franchise system already has the key support, training, purchasing power, operating system, market knowledge and research in place to accelerate development of your business. This allows its’ franchisees to conduct a startup without many of the worries independent business face—especially those which can often directly affect business failure. Beyond that, franchises offer ongoing support and continual training to ensure you reach your optimum potential for growth. In many ways, it is like having the perfect business partner or an insurance policy to help guard your business against common steps, which can result in failure. This is why prosperous franchise systems have become so popular as a business model, and why their numbers continue to grow.
A franchise comes with a track record of growth.
Franchises today represent approximately 40 percent of all retail sales, proof that a franchise system works, and when you become part of a franchise system, you are buying into a company that already has a record of accomplishment. Whereas starting a new business faces the challenges of an uncertain market, franchises have already tested many waters and you gain the benefits of their experience at the start. In addition, you gain the name power of an established business with which customers are already familiar. Obviously, this minimizes the chances of failure, while it helps to maximize your potential return on investment.
A franchise gives you the power of a brand.
The strength of any business is built upon customer loyalty. Customer loyalty is built strictly through your company’s brand image. When the giants of franchising—McDonald’s, 7-Eleven, Holiday Inn, and more—emerged mid-20th century, they built an empire of loyal customers and have made history-making businesses by becoming prosperous franchise systems. When a company establishes a brand image and then offers a piece of their brand development to qualified entrepreneurs, everyone shares in the potential prosperity. As a franchisee, you are purchasing a portion of that brand loyalty, while new startups must work for years to get even close to that level of customer loyalty, if they ever achieve it.
Bottom line: a franchise offers you opportunities at the start that you can’t get anywhere else in business, and those who want to maximize their chances of prosperity employ franchises for this reason. By harnessing an established brand and launching with proven operations, a franchise is the clear choice for any professional who wants to secure his or her future as an accomplished businessperson.