Franchises offer people seeking a business of their own a low-risk opportunity to run the show. This probably explains the popularity of purchasing a franchise. Since starting a business is a dream for many, it is not surprising that franchises have grown dramatically in the past decade with new ones cropping up every year.
What typically keeps people from starting a business is the overwhelming expense involved and the high probability of failure. No one wants to spend their life savings on a business likely to fail. Successful franchises solve this problem and provide lower-risk opportunities and support to the many people interested in achieving this slice of the American Dream.
Below are some of the top eight reasons entrepreneurs should consider investing in a franchise.
1. Franchises offer a proven formula for success. The challenge for many sole proprietors is related to the “how to” part of running a successful business venture. Franchises with a track record for success offer step-by-step business models that take the guesswork out of operating a business.
2. As the Federal Trade Commission (FTC) points out, instant name recognition is a real plus for new business owners seeking to parlay this asset into immediate income.
3. According to Entrepreneur website, many of the large franchises offer in-house financial support or financing.
4. Many low-cost franchise opportunities offer impressive ROI.
5. Franchises offer large company buying power to small business owners allowing them to take advantage of low prices on supplies and other items necessary to running a business.
6. Many franchises offer a full support system and are happy to answer questions for franchisees which can make a big difference as obstacles arise. Seasoned franchise owners who have experience with the exact same problems that new owners often encounter can offer specific advice based on personal knowledge.
7. The SBA looks on established franchises more favorably when it is time to hand out loans. The extra bargaining power afforded franchise owners can make a significant difference when it is time to consider financing.
8. Many franchises offer ongoing training that helps owners adapt more easily to changing industry market conditions such as new competition or technology challenges that could prove detrimental if not managed properly.
There is no valid reason for anyone to shy away from the excitement of owning their own business in this day and age. With so many franchise opportunities in almost every industry, there are many options to consider. Any entrepreneur willing to do the due diligence necessary to carefully examine franchise opportunities has an excellent chance of succeeding.