ad The advantages of buying a franchise versus starting your own business are obvious, but this doesn’t mean there aren’t any disadvantages to buying a franchise. It’s important to take the time to evaluate all the pros and cons before making such an important investment. There are lots of different types of franchises, so if you are wondering how to start a senior home care business or coffee van business, read on. If you decide that buying a franchise is right for you, here are five reasons you should buy one instead of starting your own business from scratch.
1) Franchises Have Proven Business Models
There are risks to starting a new business from scratch and having no proven model. And if you’re going to use someone else’s money, why not go with something that has been proven time and again? Franchises for sale have actual businesses up and running with detailed operating procedures. If you buy into a franchise, it’s likely that your new business will succeed because it already exists in some shape or form. More than 90 percent of franchises will be around after five years; independent businesses can’t make those claims. If you want proof that buying a franchise is better than going at it alone, simply look at their success rates. Starting up an independent business is tough enough—why set yourself up for failure by not letting someone else do all of the heavy lifting for you?
2) Franchises Are Less Risky Than Starting a Business
If you’re starting a business on your own, there’s a lot of risk involved. If your business idea doesn’t work out and you run out of money, there are no other sources of income to fall back on (at least until you file for bankruptcy). But franchises are different: The concept is proven, which means there’s less chance it will fail; plus, you’re getting support from an established company. Franchises to buy also have much higher success rates than businesses whether you buy a care franchise or cleaning franchises they will always have a higher chance of success than going it alone.
3) Franchises Have Lower Cost of Entry
Most franchises for sale have lower startup costs than starting a business from scratch. Not only will you pay lower startup costs, but you’ll also have access to a proven business model and established operations (which can cut down on some of your more labor-intensive work). Franchises to buy usually require that you lease or buy space, hire staff and make upfront payments before opening your doors. But by buying a franchise, those initial costs are spread out across franchisees in multiple locations; you’re often buying into an existing system that requires less upfront investment.
4) Franchises Can Provide Training and Coaching
Buying a franchise can be a big step. When you buy a franchise, you’re buying not just an opportunity to make money, but also an established system for doing business that provides training and support along with built-in credibility. Franchises often come with manuals and coaching programs to help first-time entrepreneurs navigate their way through day-to-day operations—and that’s an invaluable resource for anyone who’s new to running their own business. Many franchises will even pair you up with a seasoned mentor, which provides guidance on management strategy and systems implementation. This kind of hands-on learning is great preparation for operating your own business down the road if your franchise doesn’t work out as planned.
5) Franchises Offer Networking Opportunities
Being your own boss can make networking a bit of a challenge, but franchises come with a built-in network. In many cases, franchisors organize franchisee meetups on a regular basis to help their owners get to know each other and share best practices. Not only does this offer great opportunities for mentorship and sharing knowledge; it also helps you expand your network beyond just members of your own franchise—if your local Subway owner is also friends with another Subway owner in Kansas City, she might be able to introduce you when you travel for business.
Are you wanting to buy a franchise?
Before you buy a franchise, you need to make sure that it’s right for you. If you don’t have a lot of experience running a business, you might want to look into a franchise. Why? Because franchises are proven business models that are easy to start and run. As an entrepreneur, it is your job to do your research and find out if a franchise is right for you because there is much to learn about franchises before getting started. Buying into a franchise isn’t something to be taken lightly; therefore we recommend browsing a franchise directory online. There you can discover how much money it will cost before taking any action in order to feel confident with your decision.
I’m not looking for one, but these are great points why you need to invest in one.