Many of us can’t help but wonder what life would be like if WE were the boss? If you are a regular follower of the Hundred Acre Consulting, it’s been on the back of your mind for a while now, and you are not alone. As you lean back and forth on whether you should invest in a franchise or start a business from scratch, here are some advantages of franchise investment to consider.
1. No experience necessary
Perhaps your interest in a specific business type is something that you have no prior experience. With many franchises, that is perfectly acceptable to them. You, as a blank slate is perfect for the franchisor to mold you into just the franchisee, they want to see become successful. The franchisor provides the training you need to understand the industry and your role.
2. Developed technologies and advanced work methods
New independent businesses spend the first couple of years building, defining, and redefining the way they do things. These lessons learned can amount to much wasted time and effort along the way. Your franchisor has already endured those growing pains for you ahead of time. When you start your franchise, you are taking with you the best tools and methods from the start.
3. Trustworthy suppliers
Franchisors have established relationships with suppliers, and pass that benefit to their franchisees. Never will you worry about where to source the materials and resources for your business.
4. Economies of scale
When your business is within a franchise network, you and every other franchisee get to leverage your buying power to take advantage of volume pricing. This economy of scale works to your advantage in areas of not only goods and services but also marketing, scientific research, technology, and other vital business tools and processes.
5. Hit the ground running with extensive franchisor support
Not only will the franchisor teach you about the industry, but they show you every piece of the business. When you open your doors that first day, you will have the knowledge and confidence of what you’ve been taught leading up to opening day. The franchisor considers your franchise success to contribute to their overall success, so the franchisor is there to support you along the way beyond opening day.
6. Loyal customer base and brand recognition
One of the most significant advantages of investing in a franchise is that your franchise brand comes with a reputation and customer base from the start. People come to your brand, knowing precisely what to expect, and you have been trained by the franchisor to deliver to that expectation.
7. Lower risk
With all of these advantages we listed, not only do they give you the best chances for the success of your franchise investment. They also provide a considerably lower risk of failure if you follow the proven roadmap that your franchisor provided you.
8. Attract financing easier
Obtaining financing for a new business is a risk for the financer as well as the borrower. Financers may mitigate their risk by imposing strict requirements and risk mitigation measures. These often prove to be a significant obstacle for the prospective entrepreneur. When it comes to franchise investment, however, the proven success model eludes to a lower risk to the financer, for the reputation of the franchise works to the franchisee’s benefit.
2020 starts a decade of possibilities
New decade, new year, new ideas, and new opportunities await you. Let’s begin in 2020 with a HUGE bang. A franchise consultant like Hundred Acre Consulting can help you get started with finding that perfect franchise match for your goals and future vision. Contact us, and jump feet-first into your resolution!