For many individuals, deciding to start their own business is a dream come true. However, once they’ve made the decision, the next step is to determine whether to become a franchise owner or to invest in a traditional business model.
It would help if you compared the benefits of both models and then decide which of them suits you perfectly. Franchise organisations present a fixed structure for effectively launching, running, and growing a business. The franchisor will provide you with the framework of which the company is built.
Besides, they will also create training programs and operation manuals for the franchise owners. It will cover accounting, marketing, technology, and operations that are unique to that specific business model. All these efficiencies are expressly set in place to ensure that the franchise owners earn more, and also spend less effort operating the business.
Besides the money, it takes a considerable amount of time and effort building a brand name and creating awareness. However, when you buy into a franchise, customers already know who you are, and the services or products you offer. This presents you with a considerable advantage, especially when you’re starting out and want to grow your consumer base.
Although you will have more leeway if you set up your own business, you will have no one to call in when you require support. In comparison, a franchise business relieves you from the stress of starting your own business, as you get in touch with your fellow franchisees. Also, you have an entire team of skilled experts to back you up and answer any questions you might have. The head office will address matters and offer support each day.
Besides setting up the systems and establishing a fixed budget, you have to design marketing strategies and promotions as well. Once you’re part of the franchise system, you’re presented with pre-designed marketing campaigns and promotions that are developed by skilled experts who fully understand the market and target audience. To keep your marketing strategies fresh, the head office will design new campaigns for your target audience.
As a new business owner, you might not necessarily have the budget or the time to invest in training activities or skill development that will ultimately help you stay relevant to your target audience. However, when it comes to a franchise business, it would be in the best interests of your franchisor to offer you support and training that guarantees your business’s success.
It is definitely challenging for a small conventional business to compete with the massive budget that’s necessary to stay on top of things. However, a franchise system will consistently receive investments from the franchisor to ensure success. This is why a franchise owner will undoubtedly benefit from its ongoing investment that offers current systems, processes, and technologies for growth.
A franchise business is a great way to get the advantages of running a business without dealing with most of the risks involved. It is the perfect system for those who have a business mindset, but also want the security and support that comes with running a franchise.
The great thing about it is that you’re still running the ship, and the success of the business is mainly because of you. By taking what the franchise system has to offer, you can grow your business with a little less stress. A franchise model effectively removes most of the hurdles and headaches that are associated with a traditional business model.
However, when you evaluate the franchise system, you must look into their level of commitment towards their franchisee partners. See to it that they have future plans for development, to ensure their growth.
If you want to know more, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form, and one of our experts will contact you as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435