For those with an entrepreneurial mind, thoughts of running your own business have been a pattern in your life, often occurring during a hectic week at the office. Instead of responding to a rude email or returning a client’s call, you instead drift into a daydream of launching your own innovative company where you eventually rake in plenty of income all for yourself. Unfortunately, not all business stories end so happily. In fact, most do not, but you can improve your chances of success by investing in a franchise instead of starting a business from scratch.
The major advantage of buying a franchise is the prior establishment of the company. For one, customers already understand and trust the brand, providing immediate business and revenue. Starting a brand new company, on the other hand, involves proving the service or product to people. Essentially, you must convince someone to buy your service or product out of pure trust that it might have some value. A franchise like Subway, though, has already proven its product, service, and value. A new franchise could open and have impressive lines on day one, while the new business struggles to entice even a curious glance.
Prior establishment also means a tried and true method of running the store. Oftentimes, franchisors provide comprehensive guidance and education to the new franchise owners, recommending or even requiring certain measures to ensure success. While some truly free spirited entrepreneurs might balk at this approach, the reality is that the plan created by the franchisor has proven successful. If you have never started and sustained a profitable business before, you will benefit from this regulation.
Another pro for buying a franchise is obtaining the supplies efficiently and at a reasonable price. Starting up a business yourself means you only have your best guess to guide you on purchasing supplies. For example, a first time business owner opening a grocery store may purchase too much bread and end up throwing away what goes stale. At the same time, you may disappoint customers that come in looking for a product that you did not expect to sell out so quickly. Conversely, a franchisor has already experienced all of these issues and will usually have some advice on how to plan for business growth. Not to mention, calling in for a bulk supply using a well known company name leads to faster, cheaper supply delivery than one unknown person ordering small quantities at a time.
All in all, buying into a franchise is more likely to lead to a successful experience than starting a business. With all the independence of starting a business but without all the risk, a franchise investment is a wise financial and personal move. For more information on buying a franchise, contact the experts at SirVent Franchising.