The Advantages Of Buying A Franchise
Becoming a franchise owner is one of the safest methods of owning your own business and realising your dreams of becoming your own boss. Below are 10 reasons why you should seriously consider investing in a franchise.
1. A Proven Business Format
Franchising makes it possible to launch a new business following a proven business plan using methodologies, systems and a recognised trademark. This will dramatically accelerate the process while cutting the risk involved, making for an easier entry into business.
2. Lower Failure Rate
Buying a Business Format Franchise offers the investor an established concept that has been successfully proven.
Statistics reveal that franchise owners stand a far better chance of success than people who start an independent business. The latter face an 80 per cent chance of failing in the first few critical years, while franchise owners stand a 90 per cent chance of surviving or better.
3. Higher Chance Of Obtaining Finance
Banks are more likely to finance the purchase of a franchise than the launch of a new business. A well-established franchisor may even help its franchise owners secure the necessary finance and have close relationships with chosen banks.
4. Support From The Franchisor
Franchise owners benefit from comprehensive assistance in the form of training, mentoring and ongoing support, and help with statutory requirements and troubleshooting. Some franchisors also help with site selection, lease negotiation and more. Small business owners often have very little support or lack an experienced support team with business acumen.
5. Known Brand Name
Franchise owners typically operate under a brand name and image, which is already nationally or internationally recognised, promoted and respected. This speeds up the local market uptake and business development and reduces customer acquisition costs.
6. Lower Inventory Prices
The collective buying power of a franchise group can lower the cost of inventory and equipment, thereby saving franchise owners a great deal of money. Independent businesses usually have less bargaining power with suppliers.
7. Customer Confidence
Customers trust that the individual locations of a franchise network will offer reliability, good value and service.
8. A Peer Network
Franchise owners enjoy numerous opportunities to share their challenges and solutions, as well as seek advice from other like-minded entrepreneurs within their franchise system’s network.
9. Easier Staff Recruiting
Finding good employees is a critical success factor for many independent small business owners. A franchise business with a recognised name will have greater recruiting power than an unknown business entity.
10. Exceptional Opportunities For Growth
Continuous research and development by the franchisor provides franchise owners with new business opportunities and increase the value of the business. The very development of the franchise business creates equity for the franchise owner by increasing the resale value of the business.