If you are thinking about starting a new business but you are unsure of the type of business that you want to start, a franchise may be a good option. Generally speaking, franchises offer a number of benefits over starting a business from scratch, not the least of which is brand popularity.
One of the best things about buying a franchise is that people will already know about your product or service. This means less marketing for you, at least in an overall sense of the word. Franchises offer you more structure upfront that you will have if you start a business on your own. In addition, franchises give you more marketing and operating structure that can help you to turn a profit much faster than if you had to build the brand on your own.
Most franchises offer training that can help you to make your business more successful. This training is offered by others who have successfully operated their own franchise, which gives you a lower risk of failure overall. Costs associated with your business could also be lower as franchises offer their own marketing products. Stationary, order and invoice templates and other office supplies are often supplied when you buy into a franchise, and all of these carry the franchise logo so your business is already personalized for you when you begin. Customers may also be more comfortable with your business because they already know your parent company. This helps you to overcome the competition since your customers are already knowledgeable about what you offer.
Many franchises are very affordable, depending on what type of business you want to open. Many retail franchises are affordable and those that have national or even international brand recognition could make it easier for you to obtain financing. You will still need to follow the protocol for financing, as in drafting a business plan, but many lenders prefer franchises simply because they too are familiar with the brand and know from the start whether or not your choice will make a sound investment.
Research has shown that franchise businesses have a much higher success rate overall than businesses that are built from scratch. If you are thinking about starting a new small business and you want the benefits that come along with years of market research, not to mention the training and turn key benefits that come with franchises, then choosing to buy into a franchise may simply be a better option for you than opening your own business and building it from scratch.