If you want your new business to be the next Uber, Airbnb, or Spotify, this article is not for you. However, if you want to be your own boss, earn a great six-figure income, and create generational wealth, then keep reading! You'll find this article relevant if your goal is to have a significant positive impact on meeting your lifestyle and financial goals, following tried-and-true approaches,
This is the core question of this article. Owning your own business and being your own boss is a dream most people have at some point in their lives. With the success of shows like Shark Tank, who can resist the temptation? But most people don't quite know how. They need a guide.
You may be thinking I don't have the experience. I haven't come up with the next blockbuster idea. It's too risky. I don't know everything I need to be successful. Do I have the right skills?
Then comes the other question: How do I start? Do I have enough money to get started? How quickly can I replace my current income? How do I minimize the risk of failing and losing my savings?
These are questions about where owning a franchise business can be the best answer for business ownership. If you have the character, desire, and commitment, owning a franchise is something you should strongly consider.
Why Franchises are "Businesses-in-a-Box"
- They Have Established Name Recognition
- Financial Performance Has Been Proven Out
- You Start with an Already Established Operating Model
- Franchisors Fill Gaps in Your Own Competencies
- Franchises Have Easier Access to Financing
- With a Franchise, You Are Not Alone
They Have Established Name Recognition
A strong franchise will have instant brand recognition and a proven reputation. By owning a franchise, you operate under the trademarked name of the franchisor. Customers doing a Google search will be able to validate you and your company instantly. This name recognition helps with bringing new customers to your business
Financial Performance Has Been Proven
No successful franchisor can survive for long without successful franchise owners. Time and time again, these new owners prove the franchisor's system works. Just talk to a few owners. They are not very hard to find current and even past franchise owners.
In addition, when you start your own business, you start with nothing. As a result, failures will cost time and money, probably already in short supply. With a franchise, these pitfalls can be avoided because you are following a model that has been proven out many times before.
You Start with an Established Operating Model
When you start your own company from scratch, you must address the company's vision, set strategic goals, and deal with every last detail of running your business. A franchise gives you a massive advantage, as much of this is already predefined. In fact, they give you a well-honed operations manual on almost everything you need to know to run the business. In addition, you are working from a proven business model, clear processes, procedures, and policies, and you will likely have access to software specifically designed to operate your franchise.
Franchisors Fill Gaps in Your Own Competencies
It's not hard to find franchises that offer resources in areas where you have gaps in your own competencies. For example, many franchisors can help with sales, advertising, marketing, lead generation, call center support, problem-solving, purchasing negotiation, operational expertise, and more.
Franchises Have Easier Access to Financing
I've tried to raise money from angel investors and venture capitalists for some of my Silicon Valley start-ups. It's hard. It's REALLY, REALLY HARD!!! Believe me. And it's usually a harrowing experience. And they are sitting on your board of directors, acting as your bosses. Banks often are not very helpful either
Franchise owners have it much easier. Having a ready-made business plan with all the financial projections already done makes it very easy to go to a lender and obtain a loan. In fact, the Small Business Administration may have that franchisor on its list of approved franchises. And, like most bank loans, you know the costs and requirements to get a loan upfront. And banks won't be sitting you your board.
You Are Not Alone
Starting your own business from scratch is like standing in the middle of a hot desert all alone, miles from nowhere.
As a franchise owner, you have someone to ask for help. Either from the franchisor or other franchise owners. In addition, many franchisors assign a coach to work with you during your ramp-up phase and even ongoing. You can avoid costly rookie mistakes. A
Buying a franchise comes with clear advantages compared to starting a new business from scratch. First, your risk of failure is significantly mitigated. You have someone on your side, the franchisor, who is not just rooting for you but is there all along the way to support you in your success.