When you’re thinking about opening your own business, there is a monumental checklist of things to consider. The plethora of options out there may seem overwhelming and maybe even confusing, but one lower-risk option to take under advisement is buying a franchise. A franchise is a company you buy from a franchisor who gives you the right to sell their products or services. While you consider whether to enter into an agreement with a franchisor, it is important to know that the advantages are strong and manifold. They range from the perks of the product/service you offer, to the support of the larger company before and after opening.
- Owning a franchise gives you the feel of a small business with the support network of a larger company. You will have the independence to run your franchise as you see fit, within certain operating guidelines, and can ask for guidance and help from the franchisor when future hurdles crop up.
- When you purchase a franchise, you are buying into a proven system, or established business There is no guess work involved. From the very beginning, you are given the keys to success and taught the franchisor’s well-tested best practices so that you can steer clear of the common pitfalls that could ruin an independent start-up.
- Your new franchise will come with a tried-and-true product or service to sell. This eliminates many of the new start-up jitters about whether your product or service can weather the market. The franchisor has already tested their products and offered their services to enough customers to know whether they will be successful or not.
- When you open your franchise, you can expect to grow your customer base faster than other new start-ups. With an established product and business model, your company will have all the tools it needs to attract new customers and grow a loyal customer base.
- The franchisor offers pre-opening training and support. New franchises require extensive training in the practices of the parent company. The franchisor will provide in-person training and/or online webinars that teach you and prepare you for your opening days. They help with hiring your first employees, buying equipment, and if the franchise you bought requires a location, there is also help in picking out the location and/or
- You can also expect on-going support beyond the opening days. Franchisors want you to continue being successful and will most likely render support in the form of advertising, customer service, and continuing education to keep you up to date on the products or services offered.
- Many franchises come with a dedicated marketing team to help get your new company’s name and face into a profitable market. They may offer online campaigns, social media advertising, referral partners and public relations support.
These strengths are important to keep in mind during your decision-making process. When running down your list of pros and cons for all your new-venture options, remember that opening a small business is a lot riskier than buying a franchise. With a small business, it may be harder to gain financing, the success rate is lower, and you are completely on your own.
When you own a franchise, you’ve gone into business for yourself, but you are never by yourself. Want more information? Read our Blog What to Expect when Buying a Franchise