So you are looking to become an entrepreneur? There are many options available to you: starting your own business, buying another business, or franchise with an established company. Franchising is on the rise because it is a proven format for businesses to use when expanding. It provides people who do not know how to start a business with everything they need to run one successfully.
Being proud of running your own business can be difficult, but what adds value is supporting an already existing corporate structure with proven skills. Here are five reasons why most entrepreneurs today prefer old-school franchising rather than independently launching their own companies:
It’s a Proven Business System
New ideas are splendid, especially when it comes to creativity. From the newest neighborhoods popping up to businesses that bring convenience into our lives, bestowing innovation can take a business and one’s life in general to the next level (as long as there is consistency and dedication involved).
Franchise programs provide both entrepreneurs and business owners with an opportunity to thrive in an established market without having to go through the same trailblazing procedures that they otherwise might have had to. So what we’re trying to say is: try walking before running. Take things one step at a time. Bottom line: franchising can help you get your startup started!
Corporate Image and Brand Awareness
Buy into a franchise system that is already established and has already set up a widely recognized brand image. Customers will be more apt to purchase items they’re familiar with and work with companies they’d already be comfortable purchasing from because they’ve already shown interest in the brand on some level.
You’re Your Own Boss
Starting your own business can be an intimidating option for many aspiring entrepreneurs, especially if you’ve never run a business before. However, one way your chances of being successful can increase or decrease is based solely on whether or not you decide to follow a proven formula. It’s very similar to running a franchise where you are ultimately responsible for how it does, but also have the assistance of leaders who have already set up critical systems for success.
You call the shots, you manage the schedule, you run the show: it’s your business and your rules. But remember: “A business without a system is not a system; it’s chaos,” as Johnston puts it. You can put together “a good concept for a business that not everyone is going to like all of the time.” Again, choosing who has the final say can be contentious—and this applies to things such as artwork (you’re not stuck with the design provided), pricing, and advertising. The solution? Open channels of communication between you and your staff is essential. This makes it so that no one feels micromanaged or underappreciated.
Running a franchise can be unique. When you own a business, you have access to all sorts of fantastic benefits like much-needed, day-to-day support. You get support like processing customer invoices and payroll services, help with accounting tasks like opening new bank accounts and payment schemes, for example, training, legal advice… you name it! It’s the kind of support one has to find somewhere else if starting up independently.
Increased Purchasing Power
Deciding to open up your own business is not the most convenient thing in the world because starting out on your own means that you have to go at it alone until you can grow into a company big enough to employ others. Starting out on your own can cost you significantly more than you’re ever going to want to spend on things like materials, inventory, and supplies. The best way to begin saving money would be by partnering with someone who has already conquered their own version of these struggles by taking advantage of the buying power of the entire franchise system so they can take over some of these responsibilities! If things become too expensive for an independent operator, there are other options.
Are you a buyer seeking to purchase a company or are you a seller hoping to sell your business? If so, Hallmark Business Brokers can help. We work with buyers and sellers alike and we make the process as smooth as possible for them. Want to know more about our business brokerage services? We’d love to chat! Please fill out the brief form below, or call us at 941-445-4726. You can also visit us at 230 S. Tamiami Trail, Suite 2, in Venice. We look forward to working with you!