(MENAFN- Infinity Business Growth Network)
If you have an entrepreneurial spirit, you’ve probably thought about starting your own business at some point. However, starting your own business can be a difficult and stressful endeavor, and it’s not always a guarantee of success. In some cases, buying into an existing franchise can be the better choice for entrepreneurs who want to start their own businesses but don’t want to take on all the risk that comes with starting from scratch. Here are the reasons why investing in a franchise can be better than starting your own business!
What is a franchise?
A franchise is an agreement between two parties (franchisor and franchisee) that allows a business to market its goods or services, usually within an exclusive territory, using another company’s trademark and business system. For example, when you think of KFC you're not just thinking about their signature Original Recipe chicken but also Colonel Sanders and his original recipe for making perfect fried chicken. While it may seem like buying a franchise would mean you have to buy your customers too, that's not actually how franchises work. Customers still come through word-of-mouth, customer referrals or marketing efforts by other means.
Why franchises are so popular for aspiring business owners
There are many reasons why franchises are such popular options for aspiring business owners but below we cover the main reasons why investing into a franchise business could be a brilliant start to your journey in business.
● Franchises come with built-in brand recognition.
One of your greatest investments as an entrepreneur is time. A franchise gives you instant brand recognition and allows you to focus on being successful, not marketing yourself. If you're worried about jumping into a market that's too saturated, a franchise is actually more likely to help you succeed with far less risk than starting your own business. As long as your location isn't somewhere that conflicts with their branding, franchises work hard to make sure their locations are doing well, which ensures repeat customers and ultimately leads to their success. You'll still need to be dedicated and willing to put in hard work every day for your business, but franchising can give you some peace of mind when it comes to knowing if someone will walk into your store—they already know what they want from previous experiences at other locations.
● Training & support is part of the deal.
Investing in a franchise is much like buying any other business; it requires capital to purchase, set up and manage. And while investing isn’t inherently riskier than starting your own business, buying into a franchise comes with its own set of challenges. What’s different is that many franchises provide training and support to new owners—not just on how to run their specific store but also on broader management tactics like hiring, budgeting and more. This level of support makes it much easier for first-time entrepreneurs to start and run their business successfully. Additionally, you can leverage the brand's reputation, which can be an even bigger benefit than financial backing when things get tough in your early years.
● Franchise fees are sometimes negotiable.
The initial investment for some franchises is sometimes expensive depending on which franchise you choose, but fees are often negotiable. A reputable franchisor will be willing to work with you on your fees, offering lower fees if you agree to sign a longer contract or more readily accept their current fee structure. Make sure to speak with an attorney before signing any contracts in order to protect yourself and ensure that you are getting what you expect. Once that’s done, it’s time to start shopping around and learning more about potential franchises. There are several great places online where you can learn more about different franchise opportunities and choose one that suits your personality and interests best. Be sure to consider franchises carefully before investing; make sure it fits your budget and still allows for room for growth if necessary down the road.
● It’s less risky to join a franchise
As you can probably imagine, starting your own business isn’t easy. It takes time, money and determination. One drawback is that there’s no guarantee that your business will be profitable (even if you have all three ingredients). In some cases, it might not even make sense to start your own company; instead, consider joining an existing franchise. Because many franchises are proven to work and are backed by corporate infrastructure and monetary support, it can be more lucrative to buy into an established brand rather than starting from scratch with a startup.
● Franchises allow a faster return on investment (ROI)
Many people enter business for themselves because they want more control over their work. However, franchises allow you to eliminate a lot of mistakes and headaches, giving you an easier return on your investment and less overall risk when starting a new business. Not only do franchises have systems in place that are tested and proven (at least with one previous owner), but they also require less startup capital—meaning you can get started sooner. Plus, franchising can help accelerate growth because your franchise brand name is stronger than anything else when it comes to attracting new customers. In short, if franchising isn’t right for you (which it might not be), just remember that most successful small businesses begin as small ones—and it takes time and patience for them to succeed as well.
● It's cheaper to buy a franchise than start from scratch.
If you’re taking out loans or considering bootstrapping your company, buying a franchise can be cheaper and faster than starting your own business. If you're wary about going into debt to start your own business, buying an existing franchise with an established brand might feel safer. Consider how much capital you’ll need to make your startup successful—and then look at how much that would cost you in other scenarios. If starting from scratch is more expensive or will take longer than it would to buy into an existing brand, then franchising might make sense for you. Also another option could be taking out a loan to buy a low-cost franchise investment. Perhaps these can be great investments to start a business with no or limited money since banks are more likely to give a loan to someone buying a franchise since it's a proven system.
Where to find out more about franchising?
There are many amazing websites out there that offer franchising information completely free such as Infinity Business Growth Network which is an experienced franchise consultancy company that offers some amazing free tips to franchise your business or buy a franchise for sale on their blog page. Another great source of franchising information can be franchise directory websites such as https://www.franchise-uk.co.uk/ which is a list of UK franchises for sale but also provides the UK’s largest resource of franchising information perfect for anyone new to the idea of franchising or investing in a franchise.
Would buying a franchise be the ideal career path for you?
If you’re considering buying a franchise, you need to weigh all your options. While starting your own business may seem appealing, it isn’t always going to be right for you. When comparing franchises and starting your own business, there are pros and cons to both paths. When deciding which route is right for you, keep these points mentioned above in mind.
Where to browse franchise businesses for sale?
Franchising is still new, which means that many would-be franchisees may not be aware where to look for available franchises. A good place to start looking for available businesses for sale in your area would be at the website businesses-for-sale-uk.co.uk , which has a comprehensive list of businesses for sale around the UK.
No one said starting your own business was easy, but it’s certainly worthwhile. You can take comfort in knowing that you’re not alone. So if you’re thinking about starting your own business, or you already have an idea and are just trying to figure out how to make it work, remember: You are smart enough to succeed—and yes, you really can do it all yourself. But there’s no shame in investing in other people's experience and expertise. If you decide to go that route with franchising, know that there is good information out there and learn as much as possible before signing on any dotted lines.
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