If you need to get a business up and running quickly a franchise may be the option for you as you are buying a complete proven business model. It can also dramatically reduce your risk of business failure and may also prove to be more cost-effective than starting a business from scratch.
Here are 6 reasons why a franchise might be the best way forward to be a successful business owner
1. All the research has been done for you!
One of the biggest reasons starts up to fail is lack of market research. By buying a franchise the franchisor has done all that already. They have ironed out all the issues, ensured the market needs the offering and developed a system. They have invested time and money on refining the product or service into a successful model that customers want, at a price they want to pay. This saves you time and effort working out if you have a viable business idea and trying to fathom out what to charge and a system to sell it.
2. The branding is complete
Spending time and money on creating a brand complete with a logo and marketing materials is not required when you buy a franchise. Your franchisor will have an existing logo, a website and usually leaflets and business card templates you can use. The brand may already be well established, and this helps massively when attracting new customers. Having all this completed and ready to go will save lots of time and expense, meaning you are ready to trade straight away.
3. Systems are in place
With a franchise, a whole customer relationship and management system should be included. This saves you to trial and error trying to work out how to process and manage orders or how to maintain customers and gain repeat business. You should be able to replicate the systems your franchisor uses all the way through the business from marketing through to sales and accounts. This means the business will run efficiently from the start and leave you time to focus on growing sales
4. Bulk discounts on products and services
Your franchisor should be able to pass on bulk discounts on goods or services to you as if they have several franchisees they should be able to obtain good discounts which you can tap into. If you started your business from scratch this would be far more difficult to obtain. These discounts can mean huge savings and this all helps to make the business more profitable.
5. Training and advice
Buying a franchise means you can start a business in an industry you know nothing about, as your franchisor will train you and share their advice and knowledge on the industry. This is invaluable and can fast track you to success. They will pass on their top tips as it is in their train you well and support you to succeed. Some franchisors may offer certified training in certain industries so always check if the training is accredited and ensure the training is high quality. Ensure you fully understand what training you will receive and if there are any ongoing requirements for training. If there is check if this is included or if you will have additional fees to pay.
Starting a business can be lonely. It can be great to part of something bigger. With advice at the end of the phone and regular meetings with the franchisor and other franchises, you won’t feel isolated. It is great to have people to bounce ideas off, give you motivation and support if issues arise. Being part of a franchise can feel like you are part of a big company whilst retaining the benefits and flexibility of working for yourself.
Buying a franchise must be carefully researched. Ensure you have carefully weighed up the pros and cons and understand what the ongoing fees are and what is included in the package. Make sure you research the franchisor, the business and the brand very carefully and in your chosen location. Research the industry carefully and the reputation of the franchise within it. Get some independent advice and talk to other franchisees.
Finding the right franchise for you could be a secure, fast and reliable way to start a business without the struggle of working out your own ideas. The impact could be a great profitable business much quicker than if you set up the business alone.
Guest article authored by Debbie Gilbert, Director at VIVA Business Support