Top 3 Benefits of Owning a Franchise
There are several ways you can go into business for yourself, but perhaps one of the most tried-and-true methods is purchasing a franchise. If you read entrepreneur magazines, you’ve no doubt seen countless success stories of a business owner purchasing one store within a chain, and then another, and then another, all the while becoming a millionaire. What makes this such a tempting business venture? Here are three benefits to owning a franchise.
Established Business Structure
If you have ever attempted to start your own business, you know there is a tremendous amount of work involved. Writing a business plan for financing alone is a daunting task, not to mention determining your business structure, obtaining all your licensing and permits, hiring personnel and insuring your venture.
One benefit of owning a franchise is the business plan is already set in stone. You will be joining an already established business structure, not to mention an already established business structure with a proven track record for success.
Alongside setting your company up, another hurdle new business owners must clear is establishing a presence in their market. Even with the advent of social media, branding yourself takes research, time and a lot of hard work. If you’re unknown, you have to find ways to bring in customers, and if you don’t, your doors will be closed before they ever opened.
Owning a franchise means entering into a market with a recognized brand, so you already have a customer base. This saves you time, and a tremendous amount of money. You aren’t marching into your demographic trying to lure in business; you opened the store of an established brand across town to meet the demands of current customers. You’ve already won them over.
No corporate headquarters is going to open a location it doesn’t think will succeed. It loses money on the deal and so do you. This is why a ton of research goes into franchising opportunities at the top level, because the business wants to engage in profitable expansion. Failure is not an option, as failure goes all the way to the top.
Corporate help is another fantastic benefit to owning a franchise. You’re going into a venture with a business structure set up, branding already established, and the support of a corporate headquarters with the sole purpose of ensuring that you succeed. You won’t find this kind of back-up going into business alone, and this is why many famous entrepreneurs began their golden journey by franchising.