Why buying a franchise is a friendly option for new entrepreneurs
The thought of starting your own business can be scary, but it doesn’t have to be! There are plenty of great reasons why buying a franchise might be the best option, especially if you’re looking to make your first foray into the world of entrepreneurship. If you’re interested in starting your own business but feel overwhelmed at the thought of going it alone, consider buying a franchise and getting instant access to all the resources and support from a successful system that’s already been established. Here are seven reasons why buying a franchise is a friendly option for new entrepreneurs to get into business.
Higher success rates
One of your biggest concerns as an entrepreneur will be failure. Even if you have all of your ducks in a row and launch your business successfully, you’ll still encounter plenty of roadblocks. As we mentioned above, it’s hard work being an entrepreneur and even if you end up successful, there’s no guarantee that you won’t fail at some point along the way. Franchises offer much better odds than most startups because they are tried-and-true methods of doing business; others have done it before, so why not try it yourself? If you want to find out more statistics about franchising in the UK read our article of the four key franchising statistics to consider.
Lower barriers to entry
Franchises for sale are great for new entrepreneurs because there’s almost no barrier to entry. Many franchise companies now offer franchise loans and financing programs, so you don’t have to risk everything on a business venture with your own capital. And if you don’t have any start-up money, franchising could provide a sound way of testing out an idea before risking cash of your own. And even if you do have capital and can self-fund, franchises still offer convenience and scalability—benefits that make franchises popular among veteran entrepreneurs as well.
Training & Support from your franchisor
After investing your savings into your business or taking a loan to start your business, you don’t want to be on your own. When buying a franchise, it’s important that you choose one that comes with access to training and support from your franchisor. A franchisor can provide both in-person and online training, as well as ongoing marketing support that will help grow your new business quickly. They might also offer small-business financing options. These benefits will not only save you time, but they’ll also help you avoid costly mistakes early on—and save money down the road when it comes time to franchise out new locations or retire current ones.
Immediate brand recognition
Most people hear franchises and immediately think of household names like McDonald’s, Subway, and KFC. By buying into a well-known franchise, you benefit from brand recognition right out of the gate. If your business has trouble getting off of the ground because it lacks name recognition (i.e., if your potential customers don’t know who you are), then buying into an established franchise can give you instant credibility in your chosen industry and market.
Access to training & resources
Most franchise systems will provide you with training and resources. These help you learn how they run things—how they make money, what’s important, etc.—so that you can focus on running your new franchise business well.
It’s easier to obtain a loan to buy a franchise
One of the biggest hurdles to buying a business can be financing. Banks want you to have some experience in your industry, and they want detailed plans of how you’ll run your business. If they’re not convinced that you’ll make them money, they won’t give you cash. That’s why it’s easier to get a loan to buy a franchise since franchises use tried and tested systems so even if it’s your first time running your own business a bank is more likely to give a loan to someone buying a franchise than someone starting their own business from scratch.
Flexibility
Owning your own business can seem like quite an undertaking, but with a franchise, you get some of that stress taken away. Many franchises provide training and support in order to ensure success in addition to all of their expertise that makes it easier than ever before. A franchisee simply needs to bring their enthusiasm and commitment as well as financial resources—the rest will be taken care of by the company itself. By taking advantage of franchises for sale, new entrepreneurs can enjoy both entrepreneurship and reduced risk by having someone else handle some more technical aspects allowing you to have more flexibility. It’s truly a win-win situation!
Would buying a franchise be the right decision for you?
Franchises are attractive because they provide much-needed structure and support when you’re getting started. You don’t have to worry about tracking down an office location, designing logos, or buying furniture on your own. Instead, you’ll be able to focus on your business and will have access to in-house legal, accounting, and other resources that can assist with start-up costs. In return for these benefits, you may be asked to pay an initial franchise fee as well as ongoing franchise royalty fees. If you buy a bad franchise, however—one that isn’t properly promoted—you could wind up losing money instead of making it. So remember to do your research and make sure to only invest into the best franchises for sale.
Conclusion
It’s never been easier or more exciting to own your own business. If you’re looking for something different, think franchising. They say that opportunities come when you least expect them, and buying a franchise can be an incredibly lucrative move if you pick wisely and have your finances in order beforehand. Learn from other franchisees’ mistakes so that you don’t make them yourself! With franchises popping up all over, now is definitely an exciting time to jump into business ownership. The potential certainly exists—you just need to seize it.