Enter the Franchise Business Opportunity!
Have you always wanted to go into business for yourself? If so, it’s possible that you have considered whether buying a business franchise is the right choice for you. Starting a business in any field is a significant life and professional decision and, as with any major decision, it is important to take into account all of the pros and cons before taking the leap into a business franchise opportunity.
There was a time when someone wanting to start a business would follow the traditional route of selecting an industry, researching and establishing financing, and then hanging a shingle on the doorpost. These “mom-and-pop” businesses in many ways became the backbone of economic growth and development. Yet, as many entrepreneurs will readily tell you, independent businesses, even with their allure, often carry great risk, and the vast majority of small businesses fail within the first few years of operation.
Although franchising is a relatively new business concept as measured against the scope of history, it is a business option that carries with it a much higher success rate than traditional independent businesses, and this is particularly true if you are a first-time business owner.
According to AllBusiness.com, a leading business information and resource portal, among the advantages of a franchise over launching a traditional independent company are “instant brand awareness and credibility, administrative and/or technical support, franchisor-provided training, quicker return on investment, strong management, and a network of other franchisees and associations dedicated to supporting franchisees.”
As an independent business owner, you are solely responsible for costly promotion and marketing of your product or service. As a franchisee, you usually have the benefit of national media marketing and advertising done by the parent franchise company. In addition, independent local businesses often find themselves in direct competition with well-backed franchises that simply have more resources to promote and operate their businesses.
That said, however, the very ordered nature of franchise business opportunities may come as a disadvantage to some, as by an established franchise system the creativity of the entrepreneur is often curbed. Yet, given the support available to franchise buyers and the numerous low-cost franchise opportunities, for many, purchasing a franchise still holds noticeable advantages over starting a traditional business.
There are unquestionably distinct advantages and disadvantages of buying a franchise business opportunity, and if you are considering taking the leap from employee to entrepreneur, it is important to carefully weigh both the pros and the cons of purchasing a business franchise.
Benefits of Buying a Franchise
As reported by All Business and the International Franchise Association (IFA), the benefits of traveling the path of business franchise ownership are many, and they include:
1. Probability of Success: With an established support system, franchisees are often able to avoid many pitfalls that lead to the failure of numerous small independent businesses.
2. Brand Recognition:Customers become familiar with the franchise brand and learn to trust that brand, thus increasing business for franchise owners regardless of location.
3. Availability of Training and Support: Franchisors offer training programs for new franchise owners prior to the “grand opening” of their franchise outlet, and once the franchisee’s new business is “up and running,” franchisors provide ongoing support in the form of meetings, networking, additional training programs, research & development, etc.
4. Joint Purchasing Power with Other Franchises: While many independent business owners lack sufficient resources to do extensive advertising or even to maintain inventory at bulk levels, franchising allows entrepreneurs access to the franchisor’s purchasing system so they can leverage outlay to achieve a greater return on investment.
5. Experience of the Franchising Company: Perhaps the most compelling advantage of franchising is the benefit of the experience of the franchisor. This significant “pro” minimizes risk among franchise buyers both by helping them avoid common mistakes and by granting them access to proven systems of business operation.