6 Reasons Why Buying a Franchise Could Be Better Than Starting Your Own Small Business
You have heard all the horror stories; you know the ones where people loose their home, their marriage and their sanity; and all they did was buy a franchise. I get it. Buying a franchise is a big risk; but believe me, the risk is not as bad as starting your own business from scratch or buying an existing Small Business.
The risk comes from not fully researching the franchise business opportunity you are buying into and not knowing what to look for in a franchise system. So let me give you 6 reasons why I believe buying a franchised business is better for you that buying a Small Business:
1. Proven business model
Every franchisor will have at least one company store under their control; a store where they can demonstrate their business model and trial new products. This store will be their flagship store. The store they will train you in so that you can start trading with a detailed knowledge of operations, product and what your customer wants. This is a huge advantage when starting your own business.
2. Staff management tools
Running a team of staff is a mammoth job. You need position descriptions, training manuals and uniforms. Well your franchisor has already done all this work for you. The position descriptions just need to be downloaded. The training program is written and all modules have been prepared, you just have to implement. And as for the uniforms, all you have to do is place your order and pay for it. That is a huge job done right there.
3. Stock Management
When putting together your stock list or pantry list, again it’s all done. In the case of a food franchise all the recipes have been refined, the procedure lists prepared, products sourced and the distribution chain organised. But the real advantage is that the menu is costed out so that you know what profit margin you are aiming for right from the beginning.
For me, this is the biggest advantage. Imagine having your own marketing department. One that has your marketing calendar all planned out. The campaigns ready to roll out at the right time and all you have to do is open the package and implement. Gold!
5. Operational support
When starting your business there are many areas to refine, equipment to buy, processes to learn. Buying a franchise means that the franchise fee you paid gave you access to an operations manual. A manual that is all ready for you to put into practice. Not only do you have the instructions but you also have access to your very own franchise support person to help you implement it. How easy!
6. Network of like-minded business owners
For me this was the absolute best reason to own a franchised business. I instantly had my own network of people who understood what I was going through. Being a business owner is a lonely and unique job. Having a network of people in the same brand and business means that support from someone who is going through the same things as you are always just a phone call away.
There you have it, just six reasons why a buying a franchised business is potentially a better option than starting a Small Business from scratch. Now you know what to look for in a great franchise opportunity. Team that with great business advice from someone who knows the franchise industry inside and out and you will be on your way to having the successful Small Business that you yearn for.
“The opinions expressed by Smallville Contributors are their own, not those of www.smallville.com.au"
SHARE THIS ARTICLE WITH LIKE MINDED SMALL BUSINESS PEOPLE