Benefits of Franchising
According to known data, an approximate of 627,000 businesses gets launched each year and at the same time, 595,000 business close down each year. Furthermore, data shows that only 51% of small businesses make it past the first 5 years if they have all aspects of running the business right. Ideas are great but the implementation of the said idea is what sets successful businesses apart. Starting any business requires the know-how of operations, sales and marketing.
Most of the time, people are often drawn away by the term “franchise” because they feel the business isn’t their own creation. Looking at a franchise business or any business from this perspective is more from an emotional standpoint than logical. We’re going to look at different factors on why franchising is a safer bet compared to launching your own start-up.
Benefits of franchising
1. A successful business model
Getting a business or company to the point of profits and scalability suggests that the business model is successful for both the franchisor and franchisee. Franchisors usually have up and running locations with existing partners or franchisees who are profitable and in some cases, the franchisee opens up more locations due to the profitability of the business. Identifying the right franchise opportunities with a successful franchise model will make your business flourish.
2. Established Brand
Franchisors spend a lot of time on marketing and product development and choosing a brand which is known in the market saves you a lot of time. Riding the wave of the brand name can help you jump right into sales which is much easier than marketing a new brand. To start a company from scratch, a lot of money and consistency is required to build a brand up to a point of brand recall which usually takes years.
3. Hand-Holding in setting up the business
Franchisors help in setting up the business right from selecting the right location, recruiting the right talent and the general set up of the business which will jump start your business and help you move into the sales aspect much faster. Depending on your response time, you can launch a franchise business in 2 to 3 months with the help of the franchisor.
4. Hand-Holding in running the business
Even once your business is up and running, the franchise model is designed to help in the daily operations of running your business. Most profitable franchises usually assign staff in your location to help you with sales and support if required which is proven to be successful in any business startup.
5. Research and development
With constant competition in the market, it is critical to constantly develop existing products or add new product line to the business. Most profitable franchises have dedicated teams for research and development to constantly improve product and remain competitive in the market.