Reasons Why Starting a Franchise Business
Might Be Right for You
Has your entrepreneurial spirit gotten the best of you?
Building a business from the ground up can overwhelm the most passionate and knowledgeable leader. However, if you’ve decided to plunge into the deep end of running a business, then you already have the most important advantage: the determination to serve others.
Once you’ve chosen your industry, you must consider all of the elements that go into starting a business. From start-up costs to marketing, you might find yourself wondering if you made a mistake.
Maybe starting a franchise business would be an easier, more profitable option?
It’s not too late to rethink your plans. Keep your entrepreneurial spirit alive and read these five reasons why starting a franchise business might be right for you.
The Pros and Cons of Starting Your Own Business
Owning your business means you are your boss. You can enjoy the freedom that comes from answering to yourself and your customers. This perk might be worth all the costs you have to shoulder to keep your dream alive. Plus, doing things your way can give you the results you want. You don’t have to rely on Corporate to support you.
You can basically work when you want. Although you should work often to grow your company’s success, you always have the option to set your pace. Scheduling your time could free you to pursue other professional endeavors or personal activities.
Pursue your goals your way
If your entrepreneurial spirit is strong, then you might want more than to be the best in your field. You might want to change your industry. Holding the reins of your company can keep you in control of your destiny. You can affect change how you want.
Start-up and operating costs
Creating any commercial enterprise costs money. Add in ongoing operating expenses and you might not make a profit for years. If you’re dedicated to your dream, then you could stick it out for the long haul. If the price of running a business makes you think twice, then you should reconsider your options.
People cannot buy your product or hire you if they don’t know you exist. Marketing is a necessary evil for every business. If you’re just starting, then your customer base might be small or non-existent. You have to spread the word somehow.
You could use free options like social media marketing but effective results typically come from paid platforms. Plus, if you don’t know much about marketing, you’ll probably have to hire someone who does, raising your expenses even higher.
You should know how to do the job before you create a business plan. For instance, if you want to start a screen repair company, then you should know something about fixing and replacing screens. Learning as you go could cost you customers and pile on more headaches.
Reasons Why You Should Start a Franchise Business
Like anything in life, franchises have advantages and disadvantages. However, the pros outnumber the cons. You should start a franchise business because:
You can leverage an established business model
A franchising company that has enjoyed any success already has a system that works. Buying into a tried-and-true model is usually a safer approach than starting from scratch.
You can benefit from a recognized brand name
Most people are wary of companies they’ve never heard of. Present them with a name they know and they might be more inclined to choose them over unknown companies.
You can use proven marketing strategies
Franchising companies worth partnering with should already have marketing strategies for their owners to use. This benefit eliminates the need to deal with advertising expenses.
You can learn as you go
Some franchise companies train their franchisees, getting them up to speed on the trade. Franchisees who already know the trade might not know how to manage the business side of things. Franchise companies can step in and teach them how to properly operate their business, providing continuing education as markets and technologies change.
You can get help when you need it
Business owners can rely on books and the mistakes of others to help keep them afloat, but how long can this method sustain their success? Even if they are well-versed in business management, what if they encounter a problem they struggle to solve? What if they can’t overcome it on their own? Owning a franchise usually entails receiving continuous support. Franchise companies should want their owners to succeed.
A poorly performing franchise owner reflects badly on the home company. Providing owners with the assistance they need is a powerful way to maintain fortunes and reputations.
The Cons of Franchising
Franchises typically have standards that all owners must follow. These guidelines can ensure success and promote the franchise company’s image. Veering from them can create liability risks that could result in costly claims and lawsuits.
Less creative control
When you start a franchise business, you sacrifice your vision for that of the franchise company. You can’t be as creative with what you do when you follow accepted rules. However, as previously mentioned, the rules work for a good reason.
Fees, royalties, and the initial investment could seem like a hefty price to pay for the long-term security a franchise offers.
Further Reading from Skills You Need
If you are thinking about running your own business, or already do so, but feel that you need some guidance, then this eBook is for you. It takes you through self-employment in easy steps, helping you to ensure that your business has more chance of success.
The Skills You Need Guide to Self-Employment and Running Your Own Business is the guide no new or aspiring entrepreneur can afford to be without!
Based on our popular self-employment and entrepreneurship content.
Before You Decide
Despite the drawbacks, franchising presents more revenue opportunities at a lower risk. Franchising can present a solid structure you might not find on your own. Carefully weigh up all the pros and cons before you decide to change your life.
If you’re still hesitating to start a franchise, then think about the ratio of work to reward. Starting your own business from nothing but your dream can cost you considerable amounts of time and money. You have to make your business your life. Can you make the required sacrifices to realize your dream? What if the reward is less valuable than what you put in?
Now, look at the ratio of work to reward when you start a franchise. You can still feed your entrepreneurial spirit but at a lower expense. You won’t be set adrift without a lifeline. A franchise can support you each step of the way. You can still be your own boss to an extent. Starting a franchise business might be the solution to fulfill your professional aspirations.