Entrepreneurship isn’t just a career path, but a lifestyle. Whether you’re new to the corporate world or have successful ventures in your past, franchising can be an attractive option offering the flexibility and excitement of business ownership with a support system tailor-made for your success.
Here are the top four reasons to consider franchising over starting a new business.
Proven Business Model
According to the Small Business Association, only about 50% of new businesses survive four years or more. Naturally, the threat of failure and loss of investment is an ever-present concern for startup owners.
While franchises can fail, too, the risk is far lower. Some statistics show a failure rate of only 5-10%, which includes short-lived taco joints and smoothie stands.
Many independent-minded entrepreneurs worry about an authoritative and stale parent company. The “goldilocks option” is a franchisor with a history of industry disruption and innovation. A tried-and-true business model, combined with the agility and tenacity of a startup, could be just the recipe for success.
Tip: Nobody is born a business expert. Be sure to ask whether your franchisor offers ongoing training, development, and coaching to help get you where you want to go.
If you’re reading this, you’ve probably got a sharp eye for business. But odds are that you’re not also an expert at accounting, bookkeeping, marketing, payroll, sales, intellectual property, and tax law. (If you are, please call us immediately.) Startups need to navigate their way through all these new responsibilities, on top of stacks of arcane government paperwork.
One of the major advantages of franchise ownership is a corporate office filled with experts in each of these fields, who already understand the ins and outs of your business and want to see you succeed.
Tip: As you investigate franchise opportunities, be sure to ask about the level of support you can expect from the national office.
Think of a strip mall or shopping center near your home. Somewhere inside, there’s a small, local restaurant. You’ve never eaten there, because things look a bit off and you’d rather not get sick. The website is outdated; their Yelp page is a ghost town.
This restaurant is suffering from the effects of poor branding. The place looks sketchy, so there are no customers. No customers means no revenue. No revenue means no money to fix the place up.
This kind of vicious cycle is one of the leading causes of failure across every industry. Good marketing strategy and design are foundational for success, but a new business rarely has the time or capital to invest on top of the other administrative hurdles a startup entails.
On the other hand, franchisees buy into a recognizable brand, with logos and marketing materials pre-designed and ready to use. Your new enterprise is instantly credible, and you can hit the ground running on Day 1.
Tip: As you investigate franchise opportunities, be sure to ask if the franchisor has in-house graphic design staff who can produce custom requests. This can save you thousands of dollars on marketing expenses.
Dealing with a tricky client? Have a question about state licensing? Confused about corporate requirements? As a new franchise owner, you’ll have plenty of questions – and plenty of colleagues who can answer them.
You’ll want to seek out fellow franchisees who have been in your shoes. Their sound advice and camaraderie will be a boon throughout your career. Over time, you can give back by becoming a trusted mentor for the next generation of fledgling entrepreneurs.
Tip: As you investigate franchise opportunities, be sure to ask how the franchisor fosters relationships between franchisees.
It’s no secret that success in any field requires hard work and a steely resolve. With its host of natural advantages, franchising affords determined entrepreneurs the opportunity to be in business for themselves, but not by themselves.
Click here to fill out a short form to start your journey as a Signal 88 Security Franchise Owner.