So you’re interested in starting your own business but just have no idea where to start? Don’t worry; it’s not that uncommon. Sadly, what is common is the fact that many people give up on their dream simply because they can’t come up with a business idea. This is when purchasing a franchise can be a financially gainful opportunity. By just paying a percentage of earnings, a franchise can take advantage of support and many other benefits from a parent company.
The parent company, also known as the franchisor, will provide the purchaser of the franchise with proven procedures that have garnered success in other franchises. From operations to marketing, these methods provide business owners with a tried and true method of success. Additionally, it removes much of the “learn as you go” ideology that most business owners experience.
One of the biggest hurdles in making a small business successful is getting recognized. With franchises, this is already done. A franchise has earned notability, and this is why they’re able to turn a profit from providing franchise opportunities. In fact, many customers will have already done business with another unit in the franchise, so getting them on board won’t be difficult.
Advertising is another huge hurdle that small business owners have to face. When a person purchases a franchise from a national company, however, their advertising is pretty much handled for them. Those who buy McDonald’s franchises, for instance, are always getting advertising from the commercials that the corporation puts out. This is a huge time and money saver.
Running the Whole Thing
It’s often difficult for a business owner to get started on their own two feet, but luckily, franchisors initially provide the training that employees, managers and the business owner will need to get started.
Those who are opening their first business will gain substantial knowledge from training provided by experienced professionals. The franchisor also often helps individuals choose the best locations to open their business, and they will even help during the financing search.
Anyone who has traveled across more than one state can attest to the fact that some businesses simply don’t exist everywhere. This is because certain businesses and franchises only operate in specific geographical areas. This could include a town, county or state.
For instance, a person would have a hard time finding a Hardee’s in Denver, CO, but finding a Carl’s Jr. surely wouldn’t be a problem. This regional exclusivity ensures that certain businesses will not take business away from a franchise. This can all be especially beneficial if a person hopes to open more than one franchise unit within their specific region.
There’s no doubt that purchasing a franchise is one of the best ideas that a potential business owner could ever have. It takes away much of the difficulty that comes with starting one’s own business from scratch, and for those who really dedicate themselves to the franchise’s success, they can see profits that will likely exceed the potential earnings they could’ve had from starting their own personal company.
Keith works at Charter Franchise Group Inc. They are a full service franchise consulting and development firm based in Houston, TX.