Entrepreneurship is a dream of a lot of Americans each year. Many go on to establish successful, long-term companies. Others fail in the first few years. One of the decisions many new business owners face is whether to build a from-scratch business or buy a franchise license with an established business model.
There are a number of benefits that suggest buying a franchise is actually a better option over a DIY from-scratch business model. This blog will help you understand some of the benefits of buying a franchise instead of opening a new business.
Why Franchises are Better for Entrepreneurs
On any given year in the U.S., there’s an average of more than 773,500 franchises open for business. Franchising is a type of business model where an owner can buy into the chain to open their own venture by using the established processes and models of the corporate brand.
Starting a new business is exciting, but risky. What if you could start a business that’s already been proven to be profitable? That’s the idea of the franchise business. Franchise owners can purchase a whole packaged business that they set up and run within the corporate model. While many business owners say they don’t want the corporate control required by a franchise model, other entrepreneurs say this is a less risky way to make money with an established brand.
Franchises can be expensive to buy and set up and yes, you do have to follow the terms of the contract licensure so that the overall brand your representing stays consistent. However, entrepreneurs also say there are four key benefits of the franchise model that make it highly attractive:
- Franchises have a higher chance of success over a start-up business. That’s because you have a proven system governing every level of the business. You don’t have to start-from-scratch or waste time and money figuring out what works through trial and error.
- You receive a lot of help from the corporation. With a franchise, you not only buy into a turnkey business; most companies do their best to help you succeed by training you in everything from marketing to foodservice prep. Then there’s ongoing support to help you remain successful.
- Your name is a recognizable brand. Customers will know what to expect from your business and you won’t have to “sell” them on what you bring to the table. McDonald’s has franchises. As soon as we say the name, you probably picture a juicy Quarter Pounder. That kind of name recognition takes enormous time and energy to build—but not with a franchise.
- Freedom to grow. Franchises give you plenty of room to expand. Many entrepreneurs seek out the freedom of being their own boss. With a franchise, there is an element of that, but there is also guidance that helps you be more successful. The freedom comes once your franchise has started, become established and profitable, and it’s time to add more. Once you’ve been through the franchise experience once, it’s easier to branch out with the support of your corporate partner.
The one thing franchises lack, though, is a recruiting partner to help them find top talent to work in the business. That’s where Gecko can help. We specialize in helping our business clients succeed by bringing them the top-quality talent to build their business. Find out more. Call on us.