Starting your own business is an exciting venture that takes commitment and proper planning. Choosing a business model for your outfit is one of the first and most important decisions you’ll make. As you research, you may be curious to know if a franchise is the right model in which to invest your time and money.
10 Benefits of Joining a Franchise Business
While there are pros and cons to every business model, here we present many of thebenefits of selecting and investing in a franchise business that may make this option attractive for you.
1) Success Rate
Putting an exact number on the overall success rate for franchise business owners is difficult for many reasons. Nevertheless, the franchise brokerage FranNet, has reported that out of the 1,500 individuals they helped in joining a franchise between 2006-2010, 91.2 percent were still in business after two years, with 85 percent in operation after five years. If this is any indication, it suggests that being a franchise owner will increase your success rate significantly, as compared to sole proprietorship.
2) Start-Up Time
By joining a franchise, you will decrease the start-up time for your business, as many important and time-consuming tasks and checkpoints are already in place. The initial funding may also be easier to obtain, either through an already established relationship with financing partners, or a lowered perceived risk from your local bank.
3) Training and Support
What many new business owners and budding entrepreneurs may appreciate the most about a franchise is the initial training and ongoing support they will receive from their franchisor. After all, it is in their best interest that you succeed.
4) Selling Power
It is a well-known fact that people prefer to buy products and services from business they like and trust. As a consequence, it is important for all new businesses to make sure that they quickly establish their brand on the market as trustworthy and likeable. Through investment in a strong franchise, you will tap into an already well-established brand with a surplus of goodwill.
5) Cost Reduction
As a franchise owner, you will gain significant buying power through group purchasing, which will reduce your cost for everything from inventory to shipping.
6) National and Regional Advertising
Franchisees will also gain benefits that are closely connected with Selling Power and Cost Reduction in the form of national and regional advertising, conducted through the franchisor’s corporate headquarters. This commitment at the corporate level adds to the support you receive from your new partners as a franchisee.
7) Existing Procedures and Processes
As you develop your business, you will appreciate that you are not required to create new procedures and processes, but rather have access to existing and well-established working business materials, including standard procedures, manuals, sales processes and more.
From the start, you’ll be able to focus on building your brand at the local level without a great deal of time spent on developing administrative procedures and materials.
8) Support of a Professional Network
Maybe most important of all is that by joining a franchise you will not only become a business owner, but you will also join a network of peers that will support you in your new endeavor. The like-minded individuals you’ll associate with will share their passion and energy to help keep you motivated to reach your goals.
By joining a franchise, you will become an independent business owner with the security of a well-known brand. With a few exceptions, you will have complete freedom to make it your own, build your business, and make the business what you want it to be, working around your life, on your schedule.
10) Conferences and Associations
It’s in every franchisor’s best interest to ensure that you have access to the best available services and support. You will have the opportunity to attend annual conferences and become a member of market specific associations, which will provide you with valuable information and help you to develop your expertise.
Your Future Is Up To You
Different business models, including sole proprietorships or partnerships each have their own rewards. However, if you are looking for a proven model that can help you to succeed, you should seriously consider investing in a franchise business. As you research, there are many resources that can help you with your decision, including some great books for franchise owners and our helpful e-book below, which presents a roadmap to success for new franchise owners.