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Many With Business Start-Up Ideas Turn to Franchising Instead
Have you caught the entrepreneurial bug? You’ve probably heard stories of people that have struck it rich by making their small business idea a reality.
There is no doubt that thoughts of running your own business can be intoxicating. The reality of getting it off the ground, however, may well quickly dampen your euphoria.
50% of New Businesses Fail In Their First Year. Franchises Are Proven Concepts.
If you don't have the know how or time to build your own business from scratch and are worried that there is a chance it won’t work out since you saw that the Small Business Association says 50% of new businesses fail during the first year, investing in a franchise could be a great option for you.
How to Quickly Open Your Business and Be On the Path to Profitability
When you buy a franchise, you're buying into a proven operating system so can focus on growing your business rather than building systems. You will also have support from your franchisor, who will provide assistance with training, marketing, technology, and much more, as well as from fellow franchisees. All this support means your business will be operating and on the path to profitability much faster than if you started your own business. In addition, because banks like to make loans to businesses with proven systems, they tend to look more favorably upon making loans to purchase a franchise, verses to fund a start-up. Keep in mind that bank loans are traditionally the most difficult to obtain even if you are purchasing a franchise due to their stringent criteria. For a variety of other franchise funding options that might be a better fit for you, click here.
Before Investing in a Franchise, Consider This!
Prior to investing in a franchise vs. starting a business from scratch, there are several things you should consider.
One is to be sure you are ready to follow the guidelines your franchisor will provide. The most successful franchisees do so. The other is to ensure that you choose a franchise that delivers on its promises. Two ways to find out if this is the case are speaking with franchisees and asking to see the brand’s full franchisee satisfaction survey results. Many of the brands that had high enough franchisee satisfaction to earn a spot on Franchise Business Review’s Top Franchises list share their data publicly in the Franchise Reviews section of this site.
Ultimately, the decision to buy a franchise or to launch your own small business idea will depend on your personality as a business owner and objectives. If you can't see yourself not being in control of operations, product or service offerings, and other aspects of your business, then a franchise probably isn't right for you. If, however, you are seeking security and stability as well as a tremendous amount of support when it comes to being successful in your business, then investing in a proven franchise, whether it be an existing or new one, may be the best option for you.