Ambitious entrepreneurs dream of opening a business, of being their own boss, and of making a difference through their business. But the decision to open a business isn't an easy one. That is why so many entrepreneurs choose to open a franchise business instead of starting from scratch.
"The ever-present risk of business failure is reduced when the business program has already proved to be successful in the marketplace; the use of an established trademark saves the business owner the cost of creating and advertising a name that customers will recognize; and the advantages of group advertising and purchasing make operations more profitable." - Entrepreneur®
Franchises are individually owned businesses that rely on a template business model from an already established and successful brand. The business owner is still the head of their company, running their own team and calling the shots, but the resources available to a franchise are far greater than those available to a solo small business.
Here are some of the top benefits of a franchise system.
Work From a Proven Business Model
One big advantage of franchising is that you have access to a proven business model. You don't have to reinvent the wheel creating operating systems and processes. Everything has been detailed for you, and your franchisor should provide training on how to implement the business model. That also means that you don't need much or any experience in the industry — the franchisor can train you on everything you need to know.
A franchise business that has been operating for some time will be able to show the success of its business model across multiple locations. You can even talk to other franchisees to see how they are doing and leveraging the business model.
Own a Business without Being on Your Own
The most important thing for a new franchisee is that you are still the owner of your own independent business. As a franchisee, you build your own team and manage your business in the ways you see fit. The franchise system simply provides a template to work from. It's a business model that you know has succeeded in other locations.
But even though you are a business owner, you aren't on your own! You have access to the corporate franchisor team and a wealth of experience in your fellow franchise owners. So, when you need support, there is always someone you can turn to.
RELATED CONTENT: Benefits of a Franchisee Support Network
Build from an Established Brand
Branding is often one of the biggest challenges for a startup business. No local customers have heard of you and they don't know what to expect. Franchising is like a marketing shortcut for building your brand and generating awareness with local customers. Instead of spending your time letting the community know that you exist, you can jump right into welcoming customers who already know what your business is about.
A franchise brand may also dedicate some of its marketing budget to national branding campaigns, like commercials or paid search ads. This can help your location gain wider visibility without having to spend extra marketing dollars.
The franchise also helps smooth out any standard questions about the variety of services you offer and your client management policies. Customers can trust your business because they trust the parent brand.
Access Business Resources
Most franchises offer more than their brand and business model handbook. They also have many resources to draw from when your business needs guidance or a boost in the right direction. Promotional materials, expert advice, access to business coaching, technology, and even back-office business services can be part of the total franchise package.
Additionally, franchise brands can negotiate better pricing on inventory and services than a single small business due to economy of scale. That means you can enjoy deep discounts that you wouldn't otherwise have access to.
Many times, the franchisor is more than happy to help guide you in the right direction. After all, the franchisor wants you to succeed and can provide any support resources will help make that happen. You just have to ask when you need help.
Grow When You're Ready
As a franchise owner, you can also grow your business by acquiring additional territories or buying from an existing franchise owner. Typically, the franchisor offers discounts to existing owners, so you won't have to pay the full franchise fee for additional territories. But make sure to do your due diligence and review your franchise agreement for any hooks and hangers.
If you aren't ready to expand quite yet, there should be plenty of room for growth within your territory. Franchisors award territories based on certain criteria, so you should have a strong customer base that you can tap in to.
Get Ongoing Training from Experts
Franchise systems offer many training activities, starting with your onboarding training. That's where you will learn about the company and how to implement the business model. But the training typically doesn't stop there.
Most franchise companies offer annual or even quarterly training for franchise owners. These training sessions include sharing best practices, tips on overcoming common challenges, and more. This training can help you stay up to date with industry trends and give you insights on how to improve the efficiency of your business.
RELATED CONTENT: Evaluating Franchisee Training Programs
Increase Your Chance of Small Business Success
Working a proven franchise model can increase your chance of success. Approximately 70% of small businesses are no longer in business after 5 years. However, you increase your chances of joining the surviving 30% by working within a franchise.
By choosing a franchise with a good track record, you can significantly decrease your own potential business closure rate. This minimizes your risk, making the leap to becoming an entrepreneur a bit more secure.
Taking the Leap
Are you ready to start your own business and make a difference in your community? We're here to help make it happen. Caring Senior Service is a non-medical home care company. We can help you build your own senior home care business and establish a legacy for your family and community. Contact us today to get started.
