So you are thinking of investing in a franchise and not going ahead with your own independent start-up. You think it’s a good investment but opinions of people around you have left you in a dilemma. Of course the cost and the premium involved in obtaining and maintenance of a franchise makes many people think ten times before buying a franchise but in my opinion investing in a franchise is better and a safer option in the hard financial times going on. If you don’t believe me then let me tell you the fantastic set of advantages that come with investing in a franchise.
Advantages of Buying a Franchise
- Identity of the Franchisor’s Brand in the Market
By investing in a franchise the first thing that you gain is the market impact that the franchise’s brand name has. Not only you get an effective identity in the market but also access to the already existing customer base of the franchise’s brand.
Since it’s already an existing brand in the market it definitely will have public recognition and trust. So existing customers of the brand will prefer coming to you itself even if they don’t know you personally but they have trust on the brand name which you are running.
- Advertising Costs and Efforts
It’s a well-known and an established fact that advertising accounts for one of the biggest expenses in any business’s balance sheet.
But by opting for investing in a franchise you save much of your advertising costs as the brand is already well-known in the market and some amount of national level advertising comes in your franchise cost itself.
- Not much need of experience
If you are new to the business scene you probably won’t have much of experience or in fact, you might not have any experience at all.
But this is not a problem with a franchise as franchisors usually give the required training to enable you to operate on their business model, rules and regulations. The training includes everything like technology involved, transaction and cash handling methods, accounting rules and methods plus much more.
Also, at any point of time, if you need any kind of support, the franchisors are always available to help you out as they themselves want you to be successful. After all, their very expansion is dependent on your success.
- Lower costs on inventory and supplies
Since in one single place many franchised businesses are running of a single brand it becomes easier to procure the necessary supplies thereby resulting in increased purchasing capacity ultimately decreasing the total cost acquired on buying goods and creation of inventory.
From the above mentioned points you can easily make out the reasons behind higher success rate of franchises as compared to start-up businesses. So go ahead, invest in a franchise and enjoy the independence of a small business ownership supported by the advantages of a big business network.