If you are considering starting your own business, you are faced with the decision to go it alone or to purchase a franchise organization. Both options offer their own advantages and disadvantages. However, for many, the benefits of franchise ownership far outweigh the associated disadvantages. So what makes franchises so attractive and is it the right decision for you?
Brand recognition
One of the most obvious advantages of franchise ownership lies in the fact that when you buy a franchise, you are buying much more than a business, you are buying a name. Your franchise comes with a certain assurance that you have an existing customer base, already familiar and receptive to your business before it even opens its doors for the first time. This greatly relieves stress on you to generate business for you immediately. This is not to say that no effort is required on your part, but you are in a stronger position to start your own business awareness campaign in your community.
Support net
You may already be familiar with the phrase “In business for yourself, not alone.” This simple statement conveys quite a bit about one of the biggest advantages that the franchise owner has over the independent business owner. When you buy a franchise, you are buying a broad support network for your business. The franchisor wants his business to be successful. A successful business means higher royalty earnings, but it also means greater brand appeal to potential new franchisees. As such, any franchisor with an eye on success will do everything in their power to provide you with the tools necessary for your business to grow and flourish.
Proven business
Being a franchisee also takes a lot of the guesswork and trial by mistake out of running a business. When you buy a franchise, you are buying a proven business plan. You get acquainted with all the trade secrets and business strategies that have already made the trademark a success. Not only are you provided with a proven means of conducting business, but you also start your business with years of practical knowledge gained from the experience of others who have been running your business for much longer than you. Starting your business with a proven effective method of operation takes the risk of discovering what works and allows you to focus on growing your business from the start.
Marketing
The franchisor’s marketing reach also benefits the franchise owner. Very few independent business owners could hope to even come close to the marketing influence and power of a well-established brand franchise organization. As a franchisee, you have the advantage of being promoted in national marketing campaigns by your franchisor and of having local promotional materials provided to you. As such, you can stay safe in the knowledge that in addition to your own marketing efforts, your name is also gaining recognition in ways you could never hope to achieve on your own.
It is easy to see why franchises have become such a widespread institution. The appeal of owning a business with fewer associated risks incurred by the independent business owner is great. The franchise simply offers a more stable and reliable foundation to build your business.