Are you planning to buy a Franchise?
4 Reasons Buying a Franchise Could Be Your Next Best Move in Business
There are many ways to be your own boss and start a new business. Starting a franchise is one approach to running and developing your own business. I have helped many future or current business owners to take the best next steps in their career. While many people choose to start their own venture, many more realize the potential of buying and running their own franchise.
Although there are many benefits to starting your own business, I believe that there are four key advantages to buying a franchise.
1. Minimize the Risks Associated with Starting a Business
You’ve probably already heard the well-known statistic that50% of new companies fail within three years of their launch. Starting and building a new business from the ground up carries significant risk. On the other hand, 90% of startups under a big brand and with a good “franchise agreement” succeed.
Buying a franchise provides similar flexibility and reward for starting a new business with your own concept.The three fundamental values of a business, the Product, the Process and the People, have been proven as viable as part of the business model in a franchise business.
Truthfully, in more than 25 years of business development and consulting, I have never seen a business without risk. Honestly, if you are not ready to take any calculated risk, I would advise you against starting any business, even a franchise. However, if you do want to start a business and are looking to minimize therisk or increase your chance of success, then it is certainly worth considering buying a franchise.
2. Fall Back on Expert Support and Experience
When you buy a franchise, you do purchase the license to run the business under the brand name. However, you’ll also obtain the support of experienced experts in the industry in which you’ll do business. Startups often have to start from the bottom and work up. A franchise opportunity is offered from the back of an already established business, with a team and a concept that has already been proven as viable.
3. Take A Reasonable Starting Salary
Starting a new business and building it from scratch can be tough. Many entrepreneurs building their first or even second startup don’t take a level of salary that reflects the hours and expertise that they put into the business. Fortunately, as a franchisor already has a proven business model, you will take a modest but fair salary for the time you put in.
4. The Potential for Substantial, Long-term Reward
At first, the starting salary for a franchise business is modest. However, the real opportunity for greater reward comes when you build your second or third franchise location.While you may initially have funded your own franchise business, once this business is shown to be a success, you will quickly build credibility in developing further companies in the same industry.This is when you’ll start to see the opportunity for a significant return on your former investment that goes beyond a modest salary.
Think, plan and evaluate,then act.
For further advice on business management consultancy, contact me,
Marc Pakbaz, at AXORO Management.