There are a number of important differences between starting your own business and taking on a franchise.
It essentially boils down to how you really feel about ownership: As the owner of an independent small business, you will invariably have absolute responsibility for all of the business decisions.
Even though as a franchise owner you would lose those decision-making powers, in return you will gain the multiple advantages of being part of a much larger umbrella organisation which has a proven track record of business success.
So, let’s look at why buying a franchiseis a great alternative to running your own business.
The advantages of investing in a franchise
You receive a turnkey package
Any franchise will be a fully developed business delivered to you as a ‘tried and tested model’.
So, right from the outset you can operate the business and, of course, start earning profits virtually from day one. If your own marketing or operating skills are relatively weak, a franchise can be a great way to get into the game sooner than would otherwise be possible.
You get consistent franchise support
As an independent business owner, it can be very difficult to get timely access to the multiple kinds of support you will need – especially right at the start.
However, when investing in a franchise you will have the full support of the dedicated team that initially developed the business.
As a franchise owner, you can guarantee that you will be in business for yourself – but never by yourself. After all, it’s also in your franchisor’s interests to see that you become successful.
You operate under a known brand name
With a franchise you will be trading under a brand name which already has its own proven market profile.
So, rather than spending time and money trying to develop your own brand in order to acquire customers, you can get straight down to operating the business and making money.
In addition, that also means you will make a much faster return on your initial investment.
You get preferential prices
As part of a franchise group, your equipment and trading materials can always be purchased at preferential rates.
This is because a group has more leverage with suppliers than could ever be achieved by a sole independent trader. Your operating costs will be lower for a franchise operation than would apply if you were running the same business for yourself as an independent owner.
Your questions answered
Some common questions people ask about investing in a franchise include:
But what if I want control of the business?
It’s of course true that you will be running the business according to an agreed template. But, when it comes to growth and development of each franchise, there are many franchise businesses that are happy to allow their franchisees to have some input.
After all, if you have some great ideas, then it’s just a sound business strategy to listen to what you have to say.
Many franchises offer the opportunity for franchisees to meet on a regular basis for this reason, so it is always worth enquiring about this when shopping for a franchise opportunity.
Isn’t a franchise just for people who can make a large investment?
No, you can find franchise opportunities requiring a broad range of investment input – some for an initial investment as low as £3k, or less!
Surely there won’t be a franchise in an industry that I’m interested in?
There are franchises available in most business sectors. And many businesses which you might initially believe are independent are, in fact, a franchise.
If you are considering investing in a franchise, then your initial due diligence of every detail of the franchise offer is absolutely key to the whole process.
Not only will it enable you to find a reputable franchise business, it will also help you to locate a franchising team you can really work with, and who will support you every step of the way.
It will also ensure you secure the kind of profitable workflows and working environment you can see yourself wanting to commit to for many years to come.
By Matthew Hernon, Account Manager at Dynamis
Matt looks after Business Transfer Agents and Franchises across BusinessesForSale.com and FranchiseSales.com.