How would you like to start a business without having to deal with all the headaches associated with running one? If you’ve thought about buying a franchise, but aren’t sure where to begin, these benefits might convince you.
Franchising has become a powerful tool for businesses because it offers more opportunities than starting from scratch. Buying a franchise gives you access to proven systems, proven sellers, and proven systems.
If you want to go down the franchising route, you’ll need to consider a number of things. Below, we look at the benefits of a franchise, plus the things you should consider before going in.
Benefits of a Franchise Business
1. Access to a Well-Established Company
A well-established brand that’s already built the infrastructure needed for success. You’ll have access to an established company with a proven track record of success. There are many potential pitfalls when operating your own business – including cash flow problems and legal issues. However, established companies usually have better resources available to help them through those issues. That means they will likely be able to provide a consistent level of quality or service.
2. Access to training
Franchises often offer free training seminars so newcomers can learn how to operate their business efficiently. This could include tips and advice on marketing strategies, accounting software, human resource policies, etc. If this feature is important to you, then you will want to make sure you get full details during the application process.
3. Professional Management Team
Most franchises have a management team that helps ensure the business runs smoothly. They may assist you in selecting products, setting up locations, and other administrative duties. In some cases, they even oversee new developments to keep things fresh. It’s easy to see why most small business owners think they can do without this extra support system. But for the right kind of people, this can be very helpful, both technically and personally.
4. Strong Support Network
Once you’re up and running, there are always questions. Franchisors answer customer calls as part of their job description. Many also set up call centers to handle customer queries after hours or on weekends. This provides instant availability, which makes it easier to react to issues quickly. Your franchise should also have regular meetings with local representatives who can help out if you run into any problems.
5. Marketing Assistance
In addition to providing ongoing training, your franchiser will probably market your business to prospective customers. Some franchises even pay for advertising to generate word-of-mouth publicity. Other ways of spreading the word are through online directories like Yelp.com and social media websites such as Facebook, Twitter, LinkedIn, Pinterest, Google+, YouTube, Instagram, and Snapchat.
Things to Consider Before Getting into a Franchise
1. Cost
The cost of a franchise is one factor that should play heavily in your decision to sign over ownership of your business. While buying a franchise is a great option for those who want to diversify their income streams, it doesn’t come cheap. On average, franchisees will spend between $100,000 and nearly $300,000 to purchase and start their own business. These costs don’t need to be repaid. Instead, your monthly fee covers all overhead costs.
2. Management
Another consideration is whether you’d prefer to pursue the business yourself or work with someone else to manage your business. The reason why most entrepreneurs choose to run their business alone is that they believe they know what need doing best, and it’s time-consuming to explain everything to someone else. Working with an experienced manager is a better choice when it comes to taking care of daily operations. However, many managers charge fees to cover these services.
