5 Reasons You Should Open a Franchise

Starting a business from scratch can be daunting. Coming up with a great business concept is only the first step. You also have to study your target market to know how to provide a solution to their aches and pains, hire the right people to work with and for you, establish a system of operations to sell your product or service, and aim to achieve the financial projections you have set for your company.

Before you throw your dream of becoming an entrepreneur out the window, a good alternative for earning income as an entrepreneur is to own a franchise.

Many established brands offer franchise opportunities to interested individuals. From food and beverage to automobile suppliers, business opportunities abound for the interested entrepreneur.

Here are five reasons owning a franchise can be a smart option over creating a startup:

1. Brand value

Business owners develop their brand rigorously before opening other branches. By the time a business is ready to take the next step as a franchise, the network it has created with its existing clients and suppliers has gained enough traction in the market to be an identifiable brand. The more franchise branches a franchisor has, the greater the reach of the brand.

McDonald’s is a perfect example of a business franchise with high brand identifiability in the market. Anywhere you go in the globe, its trademark golden arches are easy to recognize. Even with tweaks on their international menu to cater to a global palate, customers know what to expect whenever they dine in a McDonald’s branch anywhere in the world.

2. Standardized supplier source

Sourcing your supplies will not be a problem when you own and operate a franchise. Franchisors provide the necessary materials and equipment for their franchisees to set up their business.

One reason some brands are reluctant to open their doors for a franchise is the apprehension that franchisees will alter the product or service that their brand is known for. To ensure that the quality of their franchisees’ product and service is at par with company standards, franchisors usually have a main warehouse or commissary that delivers prepared or semi-prepared items to the franchisees. Representatives from the head office provide employee training to ensure that the voice and tone the company is going for will be communicated by the franchisee’s staff to their customers.

3. Cost-efficient system of operations

As with branding, franchisors have developed the most cost-efficient system of operations for their company and franchisees. This offers less financial burden to entrepreneurs who do not want to go through the rigors of trial-and-error of what works best for their product and service.

US Lawns Franchise not only discusses in detail the kind of entrepreneur they are looking for in a franchisee, but it also gives a projection of lawn care startup costs necessary to put up your own landscaping business in the US. These financials help give entrepreneurs an idea of how much they need to prepare for the business, and if their liquidity can handle the required capital to set up and operate their franchise.

4. No need to go through R&D

While brainstorming and R&D may be fun, it does not come without costs. Entrepreneurs who are interested in owning a franchise need not go through the stages of product creation before they can sell a product. Franchisors already have a prepared list of products offered with a target price in mind. The costing of materials used is already incorporated in the suggested retail price, taking another task off of the hands of franchisees.

5. Marketing support

business owner

Most, if not all, franchisors offer marketing support to their franchisees in the form of print and online ads, events, and promotions. Because franchisors are keen on maintaining their branding, marketing materials are usually provided to franchisees. Branding is echoed in all the externals of the franchise, from the store interiors to advertising materials.

For some franchises, franchisors are not too strict and allow franchisees to create their own marketing kit provided brand requirements are observed.

While owning a franchise does not guarantee profitability, first-time entrepreneurs can explore the option of being their own boss while benefitting from the years of business experience of franchisors. Since the franchisor already provides a business blueprint, the margin of error for buying and running the franchise is kept at a minimum. Individuals who would like to try their hand as business owners can use the franchise as a learning curve before they can work on their own brand from the ground up.

Share and Enjoy !

0Shares
0 0