15 Reasons why you should consider buying a franchise this year
One of the best ways to start your own business and achieve financial independence is by buying a franchise. Franchises, which are usually large businesses that have been franchised out to smaller entrepreneurs, give you all the benefits of starting your own business without all the stress of actually owning and running it on your own. For anyone thinking about buying a franchise this year, here are 15 reasons why now may be the perfect time to do so.
Franchises are less risky than starting a business from scratch.
Some people view franchises as safer than starting a business from scratch. Since you’re investing in an established brand, you don’t have to worry about building recognition or attracting clients. As long as you provide good service and do what you promise, you should be able to keep your customers. If something unexpected happens, such as a recession, your franchisor will likely step in and help you. If you want to find out more about why franchises are such amazing opportunities consider reading our list of UK-Based franchising statistics.
You get help with marketing.
It’s difficult for a start-up business to compete with existing brands on its own. That’s why many successful franchisees are able to grow so quickly: because they can tap into their parent company’s well-established marketing network. When you buy a franchise, you also get help with everything from website development and accounting support to employee training and customer relations. If your aim is to build an established brand that others recognize and trust, working with an established company could be one of your smartest moves as an entrepreneur.
Brand recognition
When you own your own business, you’re responsible for building brand recognition. When people are thinking about buying something, they’ll always consider well-known brands before they look at up-and-comers. Once they’ve considered your brand, how do you convince them that yours is superior? If you want to create a strong brand identity and market share for your business quickly, investing in a franchise for sale is a smart move.
Support from your franchisor
Franchises are more than just licensing agreements and menu boards. Franchisors want to help their new franchisees succeed, so they often offer support in areas like management training, financial planning, site selection, and general start-up advice. As a result, purchasing a franchise can feel more like buying into an established company than starting your own business. You’ll have access to extensive resources that you might not have as an independent entrepreneur—and that can be helpful if you don’t have prior business experience.
Access to a network of existing franchisees
Starting your own business from scratch is tough, especially if you don’t have experience. Even if you do have experience, starting a business can be lonely—especially when something goes wrong. By joining an existing network of people in your area who have already been through many of these growing pains and challenges, you’ll have more people who are there for you when things don’t go as planned. Many franchisors offer their experienced franchisees time and advice to help new ones succeed. In addition, established businesses are less likely to fail than those started from scratch; that means that by buying into an existing system with systems in place, you will be buying resiliency as well as growth potential into your investment.
Training materials and resources
This is one of your most significant investments; they don’t come cheap. Therefore, before you sign up for a franchise, it’s important that you understand what kind of resources you’ll have at your disposal in order to run and grow your business successfully. Ask what training materials and resources are available, whether it’s ongoing education, in-person courses, or webinars. Ask if there is an online community you can join (or create) with other local franchisees. If possible, take time to talk to existing franchisees and find out how they feel about their support system. Are they using their tools? Do they wish anything was different? You want an active support system where there are no unanswered questions—otherwise, what good are those tools?
You can sell to an existing customer base.
It’s difficult to build brand recognition with new customers. By buying into an existing franchise business, you can take advantage of an existing customer base and brand reputation. The marketing you will have a lot of support with. You’ll be able to reach out directly to these potential customers through social media, direct mail campaigns, digital advertising, and more. If someone has already purchased from your company or one of its affiliates, it makes it much easier for them to trust you again.
You become your own boss.
If you’re tired of working for someone else, buying a franchise may be your best option. You’ll have more freedom. Many franchisors will provide training and guidance so that you can succeed in your new venture. For example, some experts point out that purchasing a well-established brand is often one of the smartest things you can do. That way, you won’t have to spend months (or years) building up recognition in your local area.
You set your own work times.
You might have noticed that franchising has exploded over recent years. Why is that? Well, in addition to already having some name recognition (versus starting your own business), franchising allows you to set your own work times and be more flexible with family life. Franchising opens up new worlds of opportunity for families who want more flexibility than most jobs offer, as well as allowing people with not much or no business experience to run their own successful franchise businesses.
You’re investing in yourself.
A lot of people equate starting their own business with failure. But think about it: If you work for someone else, you’re just one person in a large company of employees, and depending on how big that company is, your voice may not be heard at all. If you have your own franchise business, it doesn’t matter how many people are working under you—your voice will still be heard loud and clear. Even though with franchises, you follow a certain plan, that does not mean you have no say for services or different things you could offer in the future. Remember, franchisors are business people just like you. If you think you have a great idea, there is no harm in letting them know.
Some franchises don’t require previous experience.
While many franchises do require experience in specific fields, there are some franchises that will consider new entrepreneurs. In fact, many franchises actively seek out people who are looking for an opportunity to invest their time and energy into a business but have no prior experience as it’s an excellent way for them to learn how to run a business but also feel comfortable as they have a network of support around them.
You can ask for help when you need it.
Franchisors are there for you. Even with all of their experience, some franchisors don’t mind being asked for help—they realize that it may be necessary during your transition from employee to a franchisee. If something goes wrong, or if you have questions about how best to handle certain situations, feel free to give them a call. And don’t worry—some franchisors will help you out of pure altruism; others will charge for it. In either case, you know up front what those costs will be and can plan accordingly. You should never feel like your franchisor doesn’t want (or expect) your calls when running into issues in-store or elsewhere.
Sometimes franchise fees can be negotiable.
If you’re buying from a well-established company, don’t be afraid to negotiate fees or payment plans. The franchisor wants you as their new partner just as much as you want them. Make sure you get in touch with the franchisor to negotiate this. If you want to learn more about franchise fees why not read our article about what is a franchise fee? This article will let you know everything you need to know about franchise fees.
Your franchisor helps you find the perfect location for your franchise business.
The location you choose can have an enormous impact on your success. While a perfect location for your franchise business may seem like it’s easy to find, a few things are more important when choosing where you’ll run your new business. A franchisor will offer crucial guidance and resources to help you make sure you choose the best location for your plans and to see a return on your investment as soon as possible.
It’s easier to get access to a loan when buying a franchise than starting your own business from scratch.
When you buy a business, it’s easier to get access to capital. Banks and other financing companies are much more likely to provide loans for established businesses because they have a proven track record and often have assets that can be used as collateral. A borrower who wants to start his or her own business from scratch will have an almost impossible time getting financing because there is no established track record of profits and no assets that can be used as collateral. If you’re starting your own business from scratch, it may take years before you’re able to secure funding. To shorten that timeline, consider buying an existing franchise business instead of starting one from scratch. It might make sense financially in addition to making life easier!