Franchises – an exciting opportunity for entrepreneurs
Have you ever thought about leaving your day job and going out on your own? A lot of people ask themselves the same question. But starting your own business can be a risky and stressful venture; after all, the Small Business Association estimates that 50 percent of new businesses fail within their first five years. There is, of course, another option besides starting a business from ground zero.
Why start from scratch, when you can fulfill your aspiration of owning a business by opening a franchise of a proven and successful brand? So much of the stressful and risky part of starting up a business is already taken care of by the franchisor. There are franchisors in almost every aspect of commerce. With so many varieties of franchises available, an opportunity exists in almost every industry.
Let’s take a look at three main areas where opting to open a franchise really pays off.
- Having an established brand – Building name recognition takes a lot of time, money and effort. When you start small, resources are limited and marketing your business may likely get the short end of the stick. When you enter into a franchise agreement, you get built-in brand recognition that has already been established by the franchisor.
- Financing – Getting funding to start a business is another major hurdle for entrepreneurs trying to get off the ground. Most of the time, lenders are hesitant to lend to individuals without business experience or a proven business model. So, people either have to accept high interest rate loans or have to get creative with how they acquire funds. When you go the franchise route, creative financing is generally not required because franchises have a lower loan default rate than other new businesses. Therefore, lenders are more likely to back this type of business.
- Corporate Support – One of the scariest parts of starting a new business is taking on the challenge alone. Success is hard to come by when you’re wearing several hats at once and don’t have anyone to at least check your work or guide you. Since franchises are already established, they have already been through the processes and pitfalls many times over. And when you join a franchise, your success is in the franchisor’s best interest. So, the franchisor will be there to support you along the way with tools like training sessions, workbooks, manuals and other educational resources.
If you are thinking about going out on your own, be sure to keep franchises in mind. You never know until you explore.