If you are considering starting your own business you are faced with the decision of whether to go it alone or to buy into a franchising organization. Both options offer their own distinct advantages and drawbacks. However, for many, the benefits of franchise ownership far outweigh the associated disadvantages. So what makes franchising so appealing, and is it the right decision for you?
One of the most obvious advantages of franchise ownership lies in the fact that when you buy a franchise you are buying much more than a business, you are buying a name. Your franchise comes with a certain guarantee that you have an existing customer base, already familiar with and receptive to your business before you ever even open your doors for the first time. This greatly alleviates the stress on you to generate business for yourself right off the bat. This isn’t to say that no effort is required on your part, but you do have a stronger position to start your own campaign of raising awareness of your business in your community.
Network of Support
You may already be familiar with the phrase, “In business for yourself, not by yourself.” This simple statement conveys quite a lot about one of the greatest advantages that the franchise owner holds over the independent business owner. When you buy a franchise you are buying into a wide network of support for your business. The franchisor wants your business to succeed. A successful business means greater profits from royalties, but it also means a greater appeal of the trademark to new prospective franchisees. As such, any franchisor with an eye on success will do everything in its power to provide you with the tools necessary to make your business grow and flourish.
Being a franchisee also takes a lot of the guesswork and trial-by-error out of running a business. When you purchase a franchise you are purchasing a proven business plan. You become privy to all of the trade secrets and business strategies that have already made the trademarked brand a success. Not only are you provided with a proven means of conducting business, but you start your business with years of practical know how garnered from the experience of others who have been running your business for far longer than you. Starting your business with an already proven effective method of operation takes the risk out finding out what works, and allows you to focus on growing your business right from the start.
The scope of franchisor marketing also benefits the franchise owner. Very few independent business owners could ever hope to even come close to the influence and marketing power of a well established trademark franchising organization. As a franchisee you have the benefit of being promoted in nationwide marketing campaigns by your franchisor and provided with materials for local promotions. As such, you can rest secure in the knowledge that in addition to your own marketing efforts, your name is also gaining recognition in ways you could never hope to achieve on your own.
It is easy to see why franchising has become such a widespread institution. The appeal of owning a business with fewer of the associated risks incurred by the independent business owner is great. Franchising simply offers a more stable and reliable base to build your business on.