You’ve paid off your student loans. You’ve been working hard for maybe five or seven years, and there’s money in the bank. Sure, you’re renting an apartment, but there’s mom and dad’s garage, should you fail. But, no, you tell yourself you will not fail—failure is an option. There’s that dream of becoming an entrepreneur.
However, you’re cannot decide which business to get into. You look around and see coffee shops, resto-bars, printing companies, even lawn care (which you don’t really relish the idea of), etc. You want to start a business, but you don’t have a new product or service to offer the market. This is the time to turn to companies that offer broker franchise opportunity.
Franchising 101
Franchising is a marketing concept wherein an established company with years of experience in a particular industry lends its expertise, business processes, systems, name and various other rights to another entity that wants to start a business in a different location using that brand—for a fee.
Simply put, it is an opportunity for the franchisee (the one buying the franchise) to become an entrepreneur by legally acquiring another business’s service or product, their processes, and their systems.
To Franchise or Not?
Okay, so that’s great, you tell yourself. But why shouldn’t you just open your own, say, restaurant, or printing business? Why can’t you just get a bunch of lawn care equipment and hire people to work for you and you’ll just sit behind a desk and wait for people to call you? Why should you pay for another company in order to start your own business?
That’s because franchising has many advantages over start-ups of the same nature. Some of them are:
Instant Brand Recognition. Acquiring a franchise affords you instant brand recognition. This gets you a foot inside the door, so to speak, in an industry that’s already crowded with competing products or services. Franchise companies would have had advertisements running for about a decade or so, and unless you have a couple million dollars to spend on an aggressive marketing campaign, you’re better off with a franchise.
Experience. A franchisor would have decades’ worth of experience in their field and this is something you cannot buy if you start your own. They’ve been there, done that, and are still doing things that work.
Vast Network. Franchise companies are selling franchises because they want to grow their business fast without having to use their own money. This method is a superb way to distribute products or services wherein all involved will benefit.
Guaranteed Support. The franchisor would need to ensure your success because if you fail, it would reflect on them ultimately. Your success would be another notch on their corporate brand. Typically, franchisors would offer support every step of the way, even after your business is up and running.
These are just some of the opportunities that can you can access through franchising. Your next question would then be: what franchise do you get? There are many options out there, and with limited financial backing, you want to make sure you’re getting into the right business. That’s why asking for the help of professionals is ideal.
