When the concept of starting a new business strikes the mind, people instantly think of buying franchise; they deem it as a shortcut measure to derive instant success. As a matter of fact, it is true in some cases, but since every franchise model is distinct and different, there is no assurance of deriving the best result from every franchise investment. Whatsoever, if you are thinking of initiating a new business venture, then franchise business model is the best thing you can opt for. Here’s why-
Failure rate is lower- When you invest in a franchise, you are basically buying an established concept that has been already carved its presence in the niche market. The risk factor is low since the target customers/clients are already aware of the brand and hence the franchises stand a better chance of success than start-up businesses.
Pr-opening assistance and beyond – Franchisors provide comprehensive assistance to its franchises right from site location, equipment/product installation to staff recruitment and staff training. Some franchisors even go further to share their marketing campaigning plans and strategies with the franchises, enabling them to establish a strong foothold within least possible time.
Financing – Franchise investment doesn’t cost a fortune and the best part, banks are not too much skeptic about sanctioning of loans for franchise business. Since franchise model poses less of a lending risk than self-made businesses, banks are more willing to finance.
Instant credibility – A brand looking for business expansion through franchise usually has an established customer base. This means prospective clients/customers shall have no problem in identifying the brand’s franchise outlet. This means, with franchise model, you can actually start off with an established client base and can cease worrying about establishing customer loyalty, after you start off.
Established business model – When you invest in franchise, you do not have to figure that ‘perfect’ way to manage and run the business. As long as you can take decisions diligently and strategize and move ahead with the right plans, you can reap rich dividends out of a franchise business.