You want to be your own boss, but you don't have a solid or revolutionary business idea. You can still enjoy the benefits of being your own boss without having to take on a serious risk. How? Open a franchise.
Here are six reasons to consider opening a franchise.
1. Franchises are Part of a Well-Established Brand
One of the biggest obstacles to launching a new company is lack of brand awareness. No one knows who you are, and no one trusts you. Your brand hasn't proven itself or built any credibility.
While it's not impossible to build brand awareness, it can be anintensive and lengthy process.
When you open a franchise, you enjoy the benefit of being part of a strong brand. The company is already well-established, which means you don't have to do all of the legwork to get your name out there.
The UPS Store, for example, offers franchising opportunities. The company has ranked #1 in business services for 27 straight years by Entrepreneur's Franchise 500. Just about everyone who has ever sent or received a package has heard of UPS. With a franchise like this, customers will come looking for you instead of the other way around.
2. You Inherit a Built-in Customer Base
With a strong brand comes a well-established customer base. The company already knows its audience, has built a loyal following and knows how to market their products or services.
They've already done the hard work of winning customers over, and they'll even supply you with all of the data you need to reach your target audience.
3. Training Programs Put You on the Right Track
Most franchise companies offer excellent training programs that teach you how to run the business and the best way to do it. They'll even advise you on the best way to handle things that may come up while doing business.
Franchise companies want their franchisees to succeed – it's in their best interest.
4. You Gain a Helping Hand
Along with training programs, most companies also offer operational, real estate, construction and marketing assistance.
If your business is facing a challenge, you can call on the company's team of experts for help and advice. They will also help you find the right site for your building and even assist with the construction of it. From finding a good contractor to designing the layout of your building, most franchise companies are more than happy to help with this complex aspect of the launch process.
On top of all this, most will also help you with marketing. In fact, some companies have very specific marketing strategies that you will be required to use.
5. Franchises Reduce Your Risk
Eight out of ten entrepreneurs who launch a business fail within the first 18 months. A franchise doesn't eliminate risk completely – you still need to do your due diligence – but it does reduce your risk significantly.
Franchise companies already have a track record of success. They know what works and what doesn't. They're also required to provide you with a wealth of information on the company's operation and disclose certain pieces of information. Having all of this information at hand can help you make a smart decision when choosing a franchise.
6. You Gain Purchasing Power
Being part of a strong brand and large company will give you more buying power. That means you can negotiate with venders to get significantly lower prices on the items you need, like inventory to supplies, uniforms and equipment.
Risk avoidance is one of the main advantages to opening a franchise. Many new businesses fail because the competition is fierce or they lack the right strategies to build brand awareness. A franchise will allow you to be your own boss without having to take on the additional risk of building a brand from the ground up.