Running a business can be tricky. Between promoting your product or service and running the financial side of things it can be downright overwhelming. One of the most rewarding strategies in today’s busy and uncertain world, however, is to consider starting a franchise.
Franchises Cut Out Lots of the Risky Parts of Starting a Business
Entrepreneurship is admirable and can lead to great success, but if you’re staring your own business the red tape, struggle to get your new business known and countless other responsibilities can ruin even the best idea.
Starting a franchise is different. Whether it’s McDonalds or 7-Eleven, a franchise expert will guide you through the process and you’ll have instant name recognition and market share right upon opening up your doors. There are more than 800,000 franchises in America today, and there’s still room for more.
The Many Benefits of Starting a Franchise
The truth is franchises are much less likely to fail than new businesses. One of the biggest advantages of starting a franchise is simple: money. Many new businesses can’t get past the obstacles in their way because they lack funds.
Franchising gives you the funding to open and operate your business in return for the profit sharing system, with much less risk or liability for if something unexpected happens. This basically leaves you as a franchisee free to focus on growing the business and making money instead of becoming bogged down in risk vs. reward calculations, tricky liability situations and anxiety over funding and costs.¹
Top-Notch Management and Quick Growth
Having a franchise means your management will be very motivated and effective. They will know what works and have numerous successful past business experiences under their belt that they can use to guide you.
In addition, having a franchise means that you can generally expect a lot faster growth than if you had opened your own independent business. This is because the way a franchise operates is pre-set and perfectly suited to whatever you put into it, allowing you to recruit, train and open new units as fast as you’re able while not having to constantly oversee as many aspects of business due to the added support of the franchisor.²
Tried and True Models
The biggest underlying advantage of a franchise is that it is a tried and true model. Companies like Subway or McDonalds have a tested and verified business system that shows positive results all around the country.
Franchises have all sorts of added advantages when it comes to training and support that will help jumpstart your new business and ensure that it reaches its full potential and level of professionalism. Opening a franchise makes you part of a team built on success and shared responsibility, which is a great asset to have in today’s uncertain business world.³
In It for the Long Haul
Franchises are all about long-term commitment, and when a franchisee invests in the new business he or she will be more committed and share in the franchisor’s drive for success and optimization.
Franchises are essentially a win-win scenario where both partners are sunk into the investment and fully have a stake in its positive outcome. Franchises also allow the business to cut down enormously on employee cost, since the franchisor will often take up a lot of the duties that would otherwise have to be done by shift supervisors, accountants and so on. Overall, franchising is a successful business formula that is worth considering further.¹