Franchise businesses extend across several American sectors and are responsible for millions of jobs. These businesses are also responsible for making entrepreneurs rich so long as they pick the right franchises and run them correctly.
For the uninitiated, buying a franchise business means buying into a turn-key, established business like McDonald’s or Subway, and running a local branch/collecting its revenue.
If you’ve had cold feet about buying into a franchise in the past, below, we share key advantages in starting a franchise business that may push you to take the leap.
1. Your Chances of Success Go Up
Starting a business is always a crapshoot. As a matter of fact, the majority of businesses that get off the ground will go under in less than ten years.
Franchises boast a different, better track record though because they are backed by established brands that customers already trust. That proven success means that buying into a franchise can give you a chance of being profitable in year one and growing every year thereafter.
2. Unique Buying Power
One of the biggest hardships new startups face is needing to purchase equipment and supplies required to start producing products. These purchases can easily cost tens of thousands of dollars.
The great thing about working with a franchise is that everything you need to get off the ground can be bought through corporate, which bulk buys supplies and consequently gets you the lowest possible prices on everything.
That buying power can easily net you a savings of 50% or more off of what you’d pay on your own.
3. Predictable Profits
We can’t think of a single business you could start from scratch where you’d have data to know how much money you’re likely to make each year. When you buy into a franchise, those metrics are available to you which makes financial planning a breeze.
Franchise headquarters can provide your business with detailed summaries of how other franchise locations are performing in your vicinity and what you might expect to make. This takes the guessing out of business finance and lets you make an informed decision on whether or not buying into a franchise is the right move for you.
4. Turn-Key Marketing
Franchise businesses benefit from national franchise marketing campaigns that are run by corporate. These campaigns put millions of dollars into commercials, billboards, and more, which in turn, drive traffic to your location.
Marketing your own company might typically set your business back 7% to 12% of your revenue. When you own a franchise, you get much more marketing bang for your buck.
5. Easy Financing
If you don’t have the money required to get into a franchise, you’ll need to borrow cash from a lender. Many franchises offer their own lending services which can make securing a loan easy. Furthermore, banks are eager to lend to franchisees given the stability of those businesses.
Hop Into a Franchise Business Today
Investing in a solid franchise business is perhaps the best way for eager entrepreneurs to jump into a successful venture.
Remember, different franchises will have different fees associated with starting a business under their umbrella. Look over as many franchise opportunities as possible to determine which operation might be the best fit for you.
Would you like to learn more about business? If you would, our team would love for you to read more of the content on our blog.