If you’re thinking about ways to change your career, you’re not alone. Covid 19 has fundamentally changed many aspects of work for millions of people. In the process, people are thinking of new ways to earn a living, and to do it on their own terms. Whether that be finding a work from home job, becoming a freelancer, or starting their own business, there is a massive shift occurring as we speak.
Franchising has been a popular option for many during these uncertain times due to a number of advantages compared to starting something from scratch. Those who are considering a startup business also realize the inherent risk of doing so, and that risk has grown due to Covid. But that’s where the franchise model sets itself apart. Franchises come with built-in systems and support that can make getting your business up and running a lot easier. Plus, owning a franchise can give you peace of mind knowing that there is already a well-known brand behind your company.
Because franchises lower the risk but provide a proven path to business ownership, more people are considering them. Here are a few reasons to buy a franchise instead of starting your own company.
1. A Proven Business Model
When you buy a franchise, you’re buying into a proven business model that has been tested and proven to work. This can give you the assurance that your business is more likely to be successful than if you were to start it on your own.
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2. Support From the Franchisor
Franchisors provide a great deal of support to their franchisees, including training, marketing assistance, and ongoing support. This support can be incredibly helpful in getting your business up and running successfully.
3. Brand Recognition
A well-recognized brand can be a huge advantage for a new business, as it can help you to establish your reputation and attract customers more easily.
4. Financial Support
Another great reason to buy a franchise is accessing people who can help financially. In many cases, franchisors will offer financing options to potential franchisees to help them get started. If this is not available, you may be able to look into alternative forms of financing for your business, such as SBA loans or angel investing.
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5. Less Risk
When you buy a franchise instead of starting your own business on your own, there’s less risk involved because the franchisor has already created a successful model that you can follow in order to ensure success. Additionally, having the support of the franchisor throughout the process can also make starting up stressful than if you were doing it by yourself.
6. Less Money
Purchasing a franchise can be less expensive than starting your own business on your own, which is another reason why this option may be appealing to some people. There are also many financing options that you might not have access to when starting a business from scratch without a lot of capital.
7. Larger Market
When you buy a franchise, the potential customer base is already established for you, so you will have an easier time reaching them and getting new customers in the door compared to if you were operating your business independently. This can help grow your clientele more quickly and eventually result in success for your business.
8. Greater Visibility
When you purchase a franchise, it’s often more visible in the public eye than if you were trying to start a business on your own. This can help attract customers, so it’s beneficial for any business owner who wants their company recognized by potential clients.
10. Financial Assistance
In some cases, franchisors will offer financial assistance to their customers in the form of lower-cost products or services, which can be helpful when starting your business.
11. Assistance with Government Regulations
Some industries can have a large amount of government regulation, and having help in this arena is a great reason to buy a franchise. A franchisor may help you navigate through any governmental red tape that might slow down the process of launching your new business. By taking care of this aspect for you, it can save you time and money so you don’t have to hire a separate consultant or legal counsel to handle these issues.
12. Access to Proven Systems
When someone buys into a franchise, they’re also buying into the proven systems that are in place in order to ensure success for all components of the company’s operations – marketing strategy, product development, supply management, etc. This could make the process of running the business less stressful and more efficient for you, as you can follow a formula that’s already been tested.
13. Assistance with Management
A well-managed franchise will usually have an experienced team in place to help meet your needs when it comes to managing your branch of the company. From sales managers who track performance metrics to marketing teams that create strategies for how best to reach customers, having access to these resources can be helpful in growing your business in the future. By helping you avoid mistakes that could potentially cost you time or money, this type of guidance can save you from several obstacles along the way when trying to start up on your own.
14. Ongoing Training Opportunities
When you buy into a franchise, you will have the opportunity to attend regular training sessions and seminars that help keep your skills up-to-date. This can help ensure that your business is always providing customers with the best experience possible, even as you adapt for different markets and technological advances in the industry.
By purchasing a franchise, you’ll be able to take advantage of its well-established network of other franchisees who are all using the same brand name and selling similar products or services. This can create a support system for entrepreneurs, which may make starting up feel less intimidating than attempting it by yourself.
A franchisor has worked hard to establish their business’ reputation over time, so they want everyone who takes part in their company to be committed to operating it in the same way.
Ongoing Training & Support
Training and support is always one of the best reasons to consider a franchise over a startup over your own. Once you buy into a franchise, there will always be people available to help you when you have questions about growing your business or improving your customer service. This can make running your company less stressful, because you won’t ever be left wondering how best to handle issues that arise unexpectedly.
Better Access to Suppliers
If you buy into a franchise, then the franchisor is obligated to work with certain suppliers who offer them favorable rates on services and products that are used frequently by all of the branches of their business . When starting up on your own, however, you may not be able to negotiate these types of discounts, which could increase your costs of doing business.
Corporate Buying Power
A large franchise can negotiate with suppliers to get better prices for the goods and services that are required by their branches. This will help to lower the cost of providing these items to their customers so they can stay competitive in terms of pricing while still maintaining a healthy profit margin.
The Bottom Line
A person would want to buy a franchise because it is generally easier than starting your own business from scratch and there is already an established brand name behind them that has proven successful over time.
There are several other reasons why people choose a franchise, such as receiving ongoing training and support, networking opportunities, financial assistance, decreased risk due to corporate backing, access to systems that have been tested, having guidance in management and hiring processes, etc.
You should take stock of all these reasons when deciding which route to owning a business is right for you. Also, keep in mind that some franchises will offer more support and advantages than others. You should talk directly to a franchise consultant or the franchise themselves to get a full picture of what they offer before making any commitments.