Simple reasons why you should have started your franchise yesterday.
For many, buying and owning your own franchise can be a very rewarding, life-changing event. As you decide which industry you would like to start your first or next franchise, consider these 7 reasons why you are making such a great decision:
1. The system has proven to work.
The business model has already proven to be successful. You are simply replicating the process in a new location. As with any new location comes a new set of values and norms. Be mindful of this when you are marketing to this audience. The only learning curve is to get you up-to-speed on the inside operations of the franchise.
2. Customers already recognize the brand.
Thanks to this already successful business model, customers are familiar with the brand. Customers all over recognize top franchises such as Dominoes, Subway, and Pizza Hut. Their brand awareness provides them with the security needed to meet operational goals. Continue to stay true to that brand and exceed customer expectations in exchange for their loyalty.
3. The customer base is already established.
Due to brand recognition, you should have a pretty good idea of the types of customers that you will serve. Your job will be to continue that trust and to consistently meet customer expectations.
4. You’ll spend less money on advertising.
The Franchiser adsorbs the bulk of the advertising costs. Thanks to awareness of the brand and an already established customer base, you won’t have to worry about a large advertising budget. You can even expect to get some guidance from the franchiser on a local marketing plan.
5. You’ll receive ongoing support.
You can also expect to get continuous training and support from the franchiser. You represent their brand, so they will always have your best interest at heart. Expect to receive product enhancement, system upgrades, and access to helpful resources. You can also expect to gain experience in business planning, accounting practices, and personnel and facility management.
6. You’ll have less of a hassle during financing.
Successful franchisers typically already have a reputation with various financial institutions. As long as you are able to show that you can pay the interest on time, getting financed shouldn’t be a problem (see The Millennipreneur’s, “Tips to Consider When Trying Land a Potential Investor). Many businesses will even offer in-house financing with slightly more flexible terms.
7. You’ll have access to already established suppliers.
Your franchiser will most likely already have established relationships with their suppliers. This indicates that much of the negotiations have already been done on your behalf. This will enable you to buy supplies in bulk, which will save you money in the long-run.
Now that you have all the reasons to start a successful franchise, find an industry that will afford you the opportunity. I will caution, however, to weigh all of the reasons why you should and should not start a franchise. Be sure to invest in a franchise that you are most interested in or have had prior experience with. If feasible, it may even benefit you to meet with a Franchise Consultant to determine if buying a franchise is the right move for you.
photo credit: Blue MauMau <a href=”http://www.flickr.com/photos/108982746@N06/33435435411″>Domino’s</a> via <a href=”http://photopin.com”>photopin</a> <a href=”https://creativecommons.org/licenses/by/2.0/”>(license)</a>