Want to open your own business? Think franchise?
Many people have a desire to start their own business but don’t know where to start. They know that they have a passion for something and want to control their own destiny, but how? If this sounds like you then franchising can be a well-fit solution to your problem.
Getting a franchise can be a feasible substitute to starting your own business.
One of the main reasons that buying a franchise is an advantage is because you mitigate your risk of failure. The word to remember is “mitigate” because there still is a change for failure, though much less than opening a new business. Buying a franchise gives you that big business network right from the start while offering you the independence of a small business owner. A good reputable franchise in the market with a well-developed image, proven management and work practices can definitely give you a jump start as a business owner.
Some kind of business experience is always preferable when buying a franchise but not a necessity since the franchisor tend to provide through training that will be required in order to operate their business model successfully. From time to time, buying a franchise ends up costing less than starting your own business even after paying the upfront franchise fees. Lastly, you might discover that it is much easier to secure funding for a franchise than a new business venture.
With anything there are pros there are cons and the same fact applies with buying a franchise. Though you become a business owner after buying a franchise, there are restrictions on many aspects of the ownership. You are at times restricted on where you can operate, the product mix that you can sell, marketing ideas and the different suppliers you can use. Franchise also limits the room for creativity and innovation since you as a franchise owner cannot proceed without consent of the franchisor. You have to sign tediously lengthy agreements before the rights are granted and the agreement has a life with no assurance of renewal at the end of the agreement term. Lastly, you have to share your monthly profits with the franchisor in the form of royalty fees which affects your bottom line.
So if you find yourself looking for direction, many see franchising as a simple way of going into business for the first time. But keep in mind that simple does not mean easy because you still have to make informed decisions, work hard, have enough money, manager your time well and be customer oriented. Be stringent on the selection of the franchise and evaluate the brand before making a decision.
Happy Franchising :)
Author: Haider Shah