5 Reasons why buying a franchise is safer than starting your own business
Why buy a franchise? Buying into an existing business can be safer than starting your own since you’re purchasing tried-and-true processes and products, usually with an established customer base. Before you begin to explore different franchise opportunities, make sure you check out these five reasons why buying a franchise is safer than starting your own business.
1) You are investing in a well-known brand name
One of the biggest reasons why buying a franchise is safer than starting your own business is because you are investing in a name that already has an established customer base. There are thousands of franchises out there, and each one has proven success stories. This allows you to invest in a product, service, or brand that you can be confident will bring in customers due to its previous success. It also gives you help when starting your new business, even if it’s just getting your company name registered with trademarks and patents. In fact, many franchises are so successful that they don’t let any other businesses open in their industry around them. They do everything they can to ensure their location stands out from competitors making them more successful than others who try and go at it alone!
2) You get access to a support network
Franchises offer mentorship and access to real-world knowledge. Most franchisors have significant experience in their particular fields and can give you advice on how to run your business. This can be invaluable, especially when dealing with aspects of your business that are entirely new to you. Additionally, some franchisors provide you with professional training on topics such as finance or marketing. Of course, each franchise comes with its own individual advantages and disadvantages; every business has strengths and weaknesses, but it’s safe to say that most franchises have more going for them than just a brand name! You get access to resources: A major benefit of buying into a franchise is that it usually provides you with all of the necessary tools for running your new business.
3) You receive regular support and training
When you buy a franchise, your company will help you set up your business and provide training on how to run it. You’ll have built-in support that allows you to lessen mistakes and learn from them. Running your own business has no such guarantees; as an entrepreneur, you’re fully responsible for its success or failure. Additionally, if you sell products or services, get
established businesses as clients: There are no little guys in big corporations, so they won’t be inclined to dole out good deals to startup companies that don’t yet have regular customers (and who knows if they ever will). So make sure you get established brands as clients first before selling directly to consumers.
4) You receive help with marketing
Depending on what you’re selling, your franchisor may have an established and effective marketing strategy that’s easy to follow. This often includes design guidelines, logos, and brand standards, which give you instant credibility in your market. You also get access to startup capital: If you’re short on cash but need to keep costs low until your business picks up steam, franchises typically provide financing and other forms of financial assistance. You can’t flounder when things go wrong: When starting a business from scratch, it’s easy to falter if things don’t go according to plan (and they rarely do). With a franchise, you don’t bear all responsibility for success or failure—you simply report back on sales numbers each month.
5) It is easier to get financing when buying a franchise
You don’t have to worry about perfecting your pitch to venture capitalists, angel investors, or bank loan officers. You just need to make your case as to why you and your business are right for that particular franchise. The franchisor also helps you with training and development: With some due diligence, you can find out what training and support are provided by a franchisor at different points in time. In most cases, there will be initial training programs (in-store and online) that happen prior to opening, as well as ongoing support services available during operations (through meetings and other mechanisms). A good franchisor will help in other ways, too: A good franchisor provides not only initial training but also on-going support for many years after opening.
Would buying a franchise be right for you?
Before you start your own business, it’s important to know exactly what you’re getting into. And no matter how good you are at cooking hamburgers or operating plumbing services, you should never go into business for yourself without taking some time to learn about all of your options. Franchising can be a great way to get in on an established name and model without having to start from scratch and build up your client base from zero.
Not everyone has entrepreneurial DNA, and that’s perfectly okay. But what you do have, and probably always have had, is ambition—the drive to accomplish more and be more. You are willing to work hard for what you want, but maybe not as hard as starting your own business demands. If so, then buying a franchise might be your ideal career path. The support you need to succeed without all of the risks associated with self-employment. So if a franchise sounds like an excellent opportunity for you, why not check out the different types of franchises for sale at an established franchise directory such as Franchise UK today?