Opening a new business can be daunting, no question. There are so many things to consider and take stock of before starting your new venture.
One option one to you is to go down the route of opening an independent business, where total control of all aspects of the business will be yours. Another option is to invest in a franchise, which have a huge amount of advantages to that of an independent business.
A franchise vs independent business
Here is a quick list of reasons why a franchise may be the better, smarter option when starting your own business:
- Established brand recognition
- Proven business model
- Training and support provided
- Marketing and advertising supports and systems
- Bulk purchasing power
- Wide network of support from franchisor and other franchisees
Brand recognition
Hands down, one of the biggest advantages a franchise has is established brand recognition. Franchises commonly have a well-known and established brand. This is a huge plus and can be a huge help in attracting customers and building your own customer base. In industries where a lot of competition exists, this is especially important. There is a lot of data showing customers are more likely to choose a brand they recognise and trust.
Proven business model
Franchises have a proven business model and that’s been successful elsewhere already. This should increase your chance of success. Franchisors have already ironed out business model, overcoming pitfalls and making it easier for franchisees to get started and be profitable as quickly as possible.
Support and training
Typically franchisors provide training and support to franchisees, raging from operations to marketing to customer service.
Franchisees can also call on a network of other franchisees for support. This can be invaluable for new business owners.
Marketing and advertising
Franchisors often provide marketing and advertising support to help franchisees attract more customers.
Bulk purchasing
Franchises may also be able to take advantage of buying in bulk, which means cost savings. Franchisors will often negotiate contracts with suppliers directly, meaning lower prices and better deals for franchisees.
Investing in a franchise has advantages
Investing in a franchise can offer many advantages over their independent counterparts making it the better option for some budding entrepreneurs. From brand recognition to successful business models, a franchise can provide the resources required to succeed in the real business world.