“Most businesses will fail in their first year.”
You may have heard this statement before. Sadly it’s true. A good question to ask is why. Why do many businesses fail in their first year?
There’s likely many reasons, but one of the main reasons is simply the sheer amount of components required to start and build a business. When you consider the bookkeeping, invoicing, start up costs, establishing systems, suppliers, marketing, leads management, customer relations and cash flow you begin to appreciate that starting a business is not for the faint hearted.
Many people are just not able to manage all the different components of running a business. They may have an excellent product or service, but its the many working components that can bring a businesses to it’s knees.
There is another way that you may not have considered.
One solution is to join a franchise. Now before you switch off and say “I’ve heard it all before…” just stop consider the benefits. Many people have found great success by joining a franchise. And there are many people who are wealthy because of it. Seriously wealthy. They enjoy the autonomy of being a business owner as well as the huge upside of being a part of a franchise.
There is a good chance that a franchise opportunity exists in your area right now that could give you great success. Don’t pass over that thought too quickly. You may be just the right person to with the skills and motivation to take hold of such an opportunity. So be open to the possibility as you read 5 of the great benefits of owning a franchise:
1. Brand Recognition
An independent business owner has less chance of success than one who is affiliated with a company that has already experienced major success. When a company becomes successful enough they can use their good name to their advantage. Franchises allow new business owners to use the benefit of an established brand and credible name to greatly improve chances of success. There are actually many advantages to owning a franchise.
There are some companies that are instantly recognizable. For example, many people know they can get something to eat fast and cheap when they see the golden arches of McDonalds. Brand recognition has been built over many years with many millions of dollars you don’t have to spend. This investment has made it possible to market their products anywhere at any time. This kind of brand recognition is an invaluable tool for a successful business owner. By purchasing a franchise store from these companies most new business owners are practically guaranteed some measure of success.
2. Large Customer Base
Many franchise systems already have a large customer base in place. That means that when you join the franchise you have immediate demand which is precious to a business in it’s infancy. You can spend more time delivering a great service rather than trying to find new customers.
I know of an Australian electrician used who used this principal to great success. As an electrician his work would be very inconsistent. One week there would be plenty of work and then it would all dry up. Sound familiar? Then he joined an electrical franchise and saw 400% growth. In his own words he said “I just earnt in a month what it used to take me four months.” The franchise system was able to bring him repeat clients as well as proven systems for finding more. The hard work had been done for him and he reaped the benefits.
3. Readymade Business Plans
Planning and preparation are critical to success in any walk of life. Fortune might favour the prepared, or maybe prudent planning can just make it seem that way. Having a ready-made business plan allows business owners the ability to skip over one of the most time-consuming parts of starting a business. Planning and site development are just the precursors to outfitting a business, which is something purchasing a franchise makes much easier.
4. Fully Developed Training Programs
It can take a long time to see the flaws in certain policies and training methods for a new business. Through trial and error, many businesses perfect their training methods and develop a program that allows them to teach new employees the correct way to do things. With a franchise, those polices have already been adapted and changed over years of practice. This means that right from the start employees, managers, and company leaders will know exactly what to do. In most cases, an online training platform makes it incredibly easy to get new employees trained and into production as quickly as possible.
5. Franchise Financing Systems
In order to make sure everything runs smoothly most brands have pre-established banking and financing methods. This means that order stock and necessary equipment won’t be a guessing game. All the equipment can be purchased through brand-friendly service providers and banking providers. Although this doesn’t allow as much control as some business owners prefer, these methods are proven to be safe and reliable for any franchise owner.
Purchasing a franchise isn’t a guarantee of success but the advantages are clear. taking the risk of opening a new business is stressful enough and adding the looming chance of a glorious failure only makes it worse. Established franchises don’t just want to have investors purchase licenses, they want to see those franchise owners succeed.
So go ahead, and check out what franchise opportunities are available in your area. Many franchises don’t require prior training. Just motivated people who are looking for fresh start. Who knows what gold mines you may stumble upon.