Starting a new business comes with considerable risk. Even the most savvy professionals with an amazing business idea can devote their time, energy, and money to a venture with no success. While you could take a chance with your own business concept, another idea is to start a franchise. Opening a franchise business is less stressful because it takes numerous question marks out of the equation. How does starting a franchise reduce the stress of being a business owner?
1- A Successful Business Model
When you purchase a franchise, you are buying the rights to use an already proven business model. This takes a considerable amount of guesswork out of launching a business. You will receive guidance and even requirements for choosing a business location, building size, build-out specs, marketing, interior design, and more. When you are given the business model, you simply have to follow the model rather than hope that what you are trying will work. While there are no guarantees for success, a proven business model is a roadmap to starting a successful business.
2- Extensive Professional Assistance
By purchasing a franchise, you are not simply purchasing the right to use the brand name and business model. The franchisor will provide hands-on assistance with everything from training your team members to selecting the right site for your establishment, developing an effective marketing plan, and more. You will also benefit from any marketing campaigns the franchisor runs, such as commercials aired regionally or nationally.
3- Established Brand Recognition and Reputation
You have access to numerous franchises for your investment. Each has a different required investment amount, potential profitability, and investor requirements. More than that, you can use a brand name that customers are already familiar with. Some brands have greater recognition than others, and the most well-known brands with a positive reputation often have a higher minimum investment amount. However, in exchange, there may be great interest in your new business before the store opens. Franchisees often do not need to build up a reputation in their local area because the interest is already established.
4- Lower Risk of Financial Loss and Failure
Opening a new business is a risky venture. Ultimately, you need to build an established clientele and revenue to cover overhead before running out of capital. The stress of turning a regular profit in a fixed time period often creates considerable stress for entrepreneurs. These stressors are combined with the fact that startup owners do not know what works in terms of marketing, a business model, pricing, and other factors. By eliminating the unknown elements and lowering the risk of opening a new business, stress is directly reduced.
Opening a new business can cost tens or even hundreds of thousands of dollars, and there is no guarantee that any efforts made by the entrepreneur will produce the desired results. However, you can place yourself at a strategic advantage by taking much of the guesswork out of launching a new business when you buy into a franchise. With many franchise opportunities available, this is a wonderful time to explore the possibilities.
