If you recently terminated your business relationship with your most recent employer, and have a good amount of savings for your next venture, you might want to consider starting a franchise. It is a daunting possibility at first, but if you open a UPS Store or a restaurant franchise, it is often the start of a long and fruitful venture. Here are five reasons why franchises work very well.
1. Initial Boost
The hardest period of any new business or venture is the first few months. This is when it helps a lot that you have the franchiser who can help you with different things. In addition, you have the immediate name recognition and consumer base because your franchise is representing a household name that has hundreds of locations around the country.
2. Proper Systems
Companies that historically succeed with their franchise plans are those that have a deep system for helping new owners. They will have everything from an in-depth training program to liaisons who can assist franchise owners with their day-to-day issues. This makes it a lot easier to get through the difficult first year as an owner.
3. Buying Power
Think of all the discounts you could enjoy on items for the store because you are getting help from the parent company during purchasing. These rates are much lower than those you would get as a traditionl small business owner.
4. Sharing Resources
There are so many systems set up for franchise owners at big companies. For example, call centers, essential software and funds for marketing are available at a lower rate through a franchiser than for an independent business.
5. Picking a Spot
When you are considering getting into the franchise business, you have to choose your location wisely. If you choose a bad spot, no one will come to your store. This is where a franchise makes sense, because the franchiser will sit down and give you different location possibilities that their research indicates as favorable for your new store.