An independent business operator takes on a lot of risk when trying to launch a new business. Starting a business from scratch is hard work, and more than half of new businesses fail to become profitable.
The success rate for franchises is 90+ percent. Franchising is a growing industry - consider these facts:
- The Franchising industry employs over 8 million people in the US.
- The annual payroll for franchises is more than $229 billion.
- A new franchise is 2.5 times more likely to succeed than a non-franchised business.
- Franchising generated one out of every seven jobs in the private sector.
Buying a franchise dramatically decreases the learning curve for the business. Most franchisors provide the necessary training on how to run the business. It's like a fast conveyor belt to acquiring a lot of knowledge instead of learning by trial-and-error, which is the difficult, and often costly, course facing solo business owners.
As a franchise owner, you get to be your own boss within the comfort zone of a tried-and-true business. It's a proven commodity that works. The franchisor has demonstrated the success of the system, and can share a repeatable formula for a financial consideration - the franchise fee.
For those thinking about buying a franchise vs. starting their own business, consider these benefits:
- The franchise has already been proven successful. The franchisor and active franchisees can testify to the reliability of the systems and business operation.
- Training is provided and greatly accelerates the time to start up a business.
- The operating system can be learned and then followed to duplicate positive results.
- Brand name recognition - customers already exist and are loyal to the brand.
- Many franchisors provide location assistance, which can range from finding the right site to sales or rental negotiation. Franchisor input on location can be a key factor in success because of previous experience with other locations.
- Marketing support in the form of national and local advertising, as well as advertising and public relations templates to use, allow franchise owners to cost-effectively spread the word about their business.
- Franchisees can expect to get ongoing support from regional representatives, toll-free numbers, company intranet, meetings and conventions, as well as more training. The franchisor wants franchisees to succeed and typically does whatever it takes to get make a new franchisee competent and confident as quickly as possible.
- Discounted purchasing of supplies and goods used in the business thanks to the power of group buying.
To find out more about buying a franchise, visit Franchise Direct and check out the "Guide to Buying a Franchise."