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5 Good Reasons to Consider a Franchise

If you're considering starting your own business, you've probably been doing some research and tossing ideas around. You want to do something you love while making money, but you don't want to fail.

Here are some reasons why joining a franchise might get you on the pathway to success faster than going at it alone.

  1. You'll feel supported. Joining a franchise often means you will get extensive training for your new business, as well as ongoing support from the head office of the franchise. This network of franchisees will allow you to find out of the system works or not, and learn from entrepreneurial franchisees that have gone before you. You will benefit not only from training and support, but also from helpful advice and best practices from fellow franchisees.
  2. You'll have a recognisable brand. When you join a franchise, you will very often gain the benefit of brand recognition. Although this may not be true for smaller franchise networks that are just starting up, any larger, established franchise will generally be well known. Consumers frequent franchises without knowing that there are individual people that own the business, and this branding can give you an advantage as you compete against similar businesses with no brand recognition.
  3. You'll benefit from a proven system. Franchises already have a system in place for operating a business. This includes an operations manual, a training system, ongoing support, marketing and stationery materials (and often, an advertising scheme that's already in place) and often, recommended technology to help the franchise succeed. This also means that when you join a franchise, they will often show you how to have a successful grand opening, helping you determine what to do and how to spend your money to achieve the best results. Basically, the franchisor will tell you what you can do to get the best results in operations and marketing, and it takes the guesswork out of what to do to achieve results.
  4. You'll save money when purchasing for your franchise. Being part of a franchise gives you leverage when purchasing equipment and products for your new business -- leverage that you wouldn't have as an individual small business owner. Often, this purchasing power extends to marketing materials (e.g. signage), equipment, supplies and stock. You will receive cost savings through volume discounting when your franchisor has relationships with pre-approved vendors!
  5. You'll know how you're doing. Good franchisors will have a way to benchmark performance and track best practices. That means you can compare your results with other franchisees and find out who are the top performers, how the franchise is doing overall and how other businesses with similar situations as yours are doing. It is important to have this information so you can gauge how well you are doing, and what you can do to make your business even more successful.

As an entrepreneur wanting to start your own business, consider all the options. Do some research to find out what markets are booming, and whether becoming a franchisee is for you. Whether or not you choose to start a franchise, or go out on your own, keep your head on straight and weigh all the factors!

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