Franchising Can Give You a Head Start to Being a Successful Entrepreneur
Is Buying Into A Franchise A Good Way To Start Your Own Business?
If you have skills that you want to put toward building your own operation rather than someone else's, starting your own business is an intriguing idea. Once you research the idea, you realize that it is a big leap from the idea to success. Wouldn't it be great if you could capture much of the expertise you need, from legal assistance to marketing, and increase the likelihood that your new business would take off? Franchising allows you to do just that, but is this the best road for you?
How Franchising Can Give You A Head Start
A franchise works by requiring an initial investment and a monthly fee. With this, you buy into a business with identity and with national staff to do what you could only learn to do with experience.
Most new businesses struggle with building their brand and attracting customers in their local area. A national franchise has a name that people recognize, as well as a consistent level of quality that customers expect and rely upon. You get strict guidelines to follow, intense training, marketing help, and access to leads. It's a blueprint to capitalize on a proven, successful business model. Buying into a franchise does not guarantee you will become a millionaire, but if you are willing to work hard within the system, you can prosper.
Following A Business Model
Take the foodservice icon Mcdonald's as an example. Whether you love or hate McDonald's, you know that if you go into any store in the US, the Big Mac your order will have two all-beef patties, lettuce, cheese, pickle, special sauce on a sesame seed bun. Because Mcdonald's has a standard way to make a Big Mac and requires that the store use approved suppliers, the quality should be the same in every location. From the day the store opens, it will attract patrons of the franchise, expecting the consistent experience they've come to know and love. However, you risk jeopardizing your franchise contract by not following the business model. This could mean serving products below the required standards, not fully training your staff members, allowing the storefront to be unkempt or disorganized, or dismissing other key requirements of the agreement.
Is Franchising For You?
What is true of the restaurant giant holds true with most franchises, even in the home improvement arena. You have rules to follow; depending on the franchise, you might not be able to deviate on what products or services you offer. (Ever seen any hot dogs, burritos, or shrimp at a Mcdonald's that wasn't a test site for new products?) When faced with the choice of opening a franchise or your own operation, ask yourself the following questions:
How much money do you have to invest? Buying a franchise may initially be more expensive than starting a business of your own from scratch, but may also be more realistic as to what it costs to be successful. Many new businesses fail because they lack the funds to pay for legal services, marketing, and advertising. A franchise system helps with those aspects.
Will the franchisor's reputation help you? If you are the only outlet in your region, you might not get the benefits of name recognition and customer loyalty.
Are you willing to follow the rules to be successful? If you buy into a Roto-Rooter, Bath Fitter, B-Dry, Case Handyman Services, or UBuildIt franchise, you have to be diligent in conducting your business the way the company requires. Many franchises require that your employees wear uniforms, that you only offer certain services, and that you offer specials when the company says.
Do you have an original idea that won't fit into a franchise model? Some franchisors allow more deviation, but they want to assure that you will not damage the brand.
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