Franchising is a great business. It’s great for the franchiser who can expand his brand using other people’s money and great for the franchisee who can reduce his risks when deciding to run his own business by investing in an enterprise that is already proven to be a success. As a franchisee you are copying a method of marketing a product or service that already works.
A franchise is far less risky than starting up a business on your own. The fact is that if you and I set up any form of business together, our chances of still being together in two years’ time is about 55%. There are many reasons why the business has only 55% chance of survival after a two years’ time, some of the reasons can be:
- Wrong Location.
- Wrong product or service.
- Running out of money due to lack of experience.
However with a franchise the success rates rises to over 90%. In other words, the chances of still being together in a franchise business after two years’ time are over 90%. That’s why, generally speaking, banks love franchises. There is of course risks the bank has to take of lending money to anybody, but that risk is greatly reduced when the borrower is buying into a system that’s established and works. If it works for others in the franchise business, why wouldn’t it work for you?ALSO READ: Defining the franchise business.
Benefits of a Franchise
With a franchise, you don’t have the problems associated with a business you’ve created from scratch. These problems have already been solved out for you. You save a lot of time, a lot of money and a lot of stress. You are your own boss with a projectable future income and the satisfaction of knowing that you are creating an asset. If someday you decide to leave the business you have something to sell. You have built up a valuable customer base and when it’s time to move on someone will gladly pay you a premium to step into your place.
How to be successful
Franchisers look for ambitious and motivated people, good manager with leadership and communication skills and people with lots of energy and enthusiasm that doesn’t mind overtime and hard work. It’s also important to have a strong desire to achieve financial success. You should have a good appearance and personal credibility and you need to prove your ability to finance and sustain a new business. You have to remember that taking a franchise is a major decision. It usually means a career change and a sizable investment of your life savings. Think about it carefully and do a thorough research on the franchise and the market.
No experience needed
You don’t have to worry about your lack of experience on running a business. The Franchiser will give you everything you need to get your business of the ground and keep it running successfully. This will include full training, customer leads, equipment, a startup pack of marketing materials and advice on preparing your business plan. Remember, the franchiser doesn’t make money until you make money. So it’s in the franchiser interest to keep you going and successful
Franchising gives you a brand that will be chosen over products that have the same function possibly the same quality.
The franchising slogan is: “Your in business with yourself, but not by yourself”
You are part of a team who are there to help each other, exchange ideas and share experience under the franchisers umbrella and with its ongoing support.