Going into business on your own is challenging, especially since most businesses fail within their first three years. However, you can go into business by buying into a well-known brand in a well-known industry by purchasing a franchise. The following are six benefits of buying a franchise.
Higher Success Rate
Since most franchises are well-known businesses with a support network, they are more successful than other small businesses. When you go into business on your own, you need time to build your brand and gain a reputation to draw people through the door. With a franchise however, that work is already done, so all you need to do to succeed is correctly manage the business and its books.
Easier to Finance
Banks like to know what they’re getting into when they allow someone to borrow money to open a business. Because franchises are often well-known companies, banks or other lenders are usually more willing to let people borrow the money they need to open such a business. It is much harder to get a loan for yet-unknown business, as lenders do not like to take risks with their money.
Many franchises provide training for running every aspect of the business. They will train owners how to make the products or provide the service that they are selling, as well as how to manage the business and how to get help when it is needed. Since it is their reputation on the line, the franchise will make sure you know how to operate the business up to their standards before the doors to your branch are opened.
When you open a business of your own, you are responsible for its advertising, whether that is through online promotions or traditional advertising on television, in newspapers, or over the radio. However, when you purchase a franchise like Kickstart My Coffee, the corporate office will take care of the advertising for your business and will show you how to promote your franchise locally in other ways, such as over the internet.
Even though you may be buying a franchise and starting a small business, you will have the support of a corporation behind you. You can contact the corporate office for advice or help when you have a problem, and a district supervisor can visit your store to provide the support you need when resolving an operational issue with your business.
When you’re running a franchise business, you usually do not need to source your own supplies. The franchise will already have contracts with vendors to supply the needs of your store, such as paper goods, products, uniforms, and cleaning supplies. They will have already negotiated the rates for these supplies, so you won’t need to haggle with suppliers to get the best price on the items you need to run your business.
Most franchises are turn-key, so all you need to do is get trained and go to work once the franchise is ready to open. The corporate office will provide their blueprint for success, and all you need to do is follow it in order to succeed.