One of the first decisions you will make initially is to either start your business from scratch vs starting by investing in a franchise business model. The question is do you want to go in it alone (do you have the time to develop your business?) vs the opportunity to invest in an already proven business model with an experienced franchise partner to train and support your business.
The franchise provides a proven business model for making money. This has gone through trial and error, market research & development, to be tested and proven effective. These are the top benefits the franchise provides:
Risk Mitigation – The franchise has a lower risk of failure than an independent business, it has been built, tested, and proven to be effective.
Efficient Distribution – The franchise has figured out how to deliver its product/service into the hands of paying customers.
Experience – The franchise has the experience that provides operational efficiencies and avoids costly mistakes. Every franchisee starts off by going through the franchise’s effective training process.
Purchasing Power – Leveraging the combined power of the group
Brand Identity – The franchise may already have brand awareness in your local market or know-how to quickly establish brand identity in new markets
Management Systems – Assistance for human resources, accounting, facilities management, specialized software to run the business, and legal compliance.
Planning & Startup Assistance – They provide a standard operating procedure and realistic goals for the business. They have developed a great deal of experience from helping other franchisees open previously. They know how to launch new franchise units efficiently, saving advertising dollars and shortening the ramp-up time to profitability.
Marketing Assistance – They develop professional marketing campaigns and advice on how franchisees will develop local marketing. Advertising can get expensive and knowing how to reach your customers is critical. Additional comprehensive, industry-specific, sales training is part of each franchise model.
Access to Financing – Lenders are familiar with the success rates of franchises and can utilize programs through the Small Business Administration (SBA).