When you decide to start a business, a franchise or not, it is not a decision you make lightly. We constantly hear of companies failing in the first two years. Buying into a franchise can mitigate some of those risks that are typically associated with a new business.
Here are some of the benefits you can expect when you buy a franchise.
Work in a new industry
If you are looking into a new business opportunity, you can enter into an industry with no experience. Having a business background is obviously key to any business. But a franchise can offer the support and training you need to succeed.
For most parts, you can hire in or take over existing expertise in the business. Managers and staff often come with a franchise business.
The support you get from the head office in terms of systems, contacts, and training can allow a new industry to become a reality.
Franchises offer a much lower risk profile than starting a business from scratch. They have the backing of larger and more established corporations. The companies have already been tested in a variety of markets. The history of proven success can allow you to get funding or loans. When you are a start-up, banks and finance houses may not give you the cash you need to get going.
An existing customer base and brand recognition
A franchise comes with a loyal and familiar customer base already. Finding new customers and building that trust factor is a tricky part of starting any business.
Staff is more inclined to take a chance on a new business when it has the backing of a franchise. They know that they will have customers from the day they open the door.
Existing suppliers and buying power
The franchise system manages deals and discounts as a group. So as you enter into the fold, you instantly benefit from those relationships. The group often negotiates rates and discounts for bulk buying. But be aware of Franchisors loading prices unnecessarily for the exclusive use of suppliers.
Get a business in a box
When you start, you often get support with branded material, help with location negotiations, design, construction, financing, staff training, and marketing. Some Franchisors even offer funding to get you started.
Remember to read all the fine print and ensure you are getting the best deal. If your business needs help with cash flow, supply chain finance or growth business loans, get in touch with us on 0861 93 93 93 or email us on firstname.lastname@example.org or contact us here.
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