|
1. Minimize
Your Risk:
In my opinion the biggest advantage
of buying a franchise business is that it is generally a lot less
risky than starting a new business. Most studies conclude that
over 90% of new businesses fail within 3 to 5 years. In
comparison, U.S. Dept of Commerce studies have shown that over 92%
of franchised businesses are still operating after 5 years. With
an established and proven operating system already in place for to
follow, franchises can generally offer you a much greater chance
of establishing a successful business.
2. Training Provided:
When you buy a franchise most
franchisers will automatically require you to complete a
comprehensive training program that can last any where from 1 to 4
weeks or more. This training is typically held at the franchisers
corporate headquarters or at the actual franchise location. You
will benefit greatly by being trained to operate your franchise
location the same way that all other franchisees were,
dramatically reducing the learning curve by directly transferring
the knowledge and secrets of running a successful operation.
3. Franchiser Support:
Providing on going support to new
and established franchisees is second nature to most franchise
companies. Its just common sense that franchisers will want to
support you because it is in their best interests for you to
succeed for a number of obvious reasons including the chance to
generate more royalty fees and expanding their franchising system.
So in general you can always feel comfortable that most
franchisers will be available to provide support and answer any
questions and concerns you may have about your franchise business.
4. Marketing Assistance:
One of the major advantages of the
franchising business model and the system of multiple standardized
units that it creates (that generally offer the same products and
customer experience) is that it inherently helps market your
franchise location with little or no effort. That is not to say
that as a franchisee you should not attempt to do some of your own
marketing as well. And if you do, the good news is that many
franchisers are often willing and can be very effective in helping
you develop marketing plans for your own local market.
5. Proven Business Model:
Starting a new
business from scratch is inherently risky. When you buy a
franchise you are generally buying a proven business model or
concept that can be independently validated as having a track
record of success. Unlike most small businesses started from
scratch, a franchise business can offer the advantages of
established operating systems, services, products, marketing, and
brand name recognition that can save you invaluable time and
money. And most importantly, these advantages can ultimately
increase your chance of becoming a successful small business owner.
About Author:
Ray Haiber has
10 years experience as a small business consultant as well as a
professional
Arizona business
Broker You can view an
A to Z list of
franchise opportunities for
sale here. |
