When it comes to starting a business, you have two different choices: beginning your own, new business or buying an existing business i.e. a franchise. Though there are advantages and disadvantages to both groups, you may discover your chances of success becoming higher by deciding to invest in a franchise.
In the Beginning . . .
If you decide to partake in a franchise, you will have an arrangement with a party to buy the rights to sell a specific product or service from said party, or the franchisor. Because starting a brand new business is risky (especially in this economy), you may choose to take this route. Consider the competition of creating, marketing, and selling a brand new product or item.
There is a long list of advantages that go hand-in-hand with choosing to invest in a franchise versus starting a brand new business.
First, there is a low risk level. After all, you’re most likely going to choose a company that is already successful and well known i.e. Subway, Starbucks, Cold Stone, etc. Because your business already has name recognition, you stand the chance of making more money and in a quicker manner will little effort in the way of marketing or advertising.
Another perk to taking advantage of a small business franchise opportunity could include training. When taking on a franchise, training programs are usually developed and taught. Even if you have little or no experience running a particular business, you will be taught how inside operation of the industry works.
Receiving support, in general, is a big motive to choose a franchise over a new business. This support will come in different ways, including: managerial support and problem-solving techniques, financing, and even site selection i.e. deciding where your store or restaurant should be located.
Another advantage to consider is advertisement. If you take on a well known franchise, again, Subway, Starbucks, Cold Stone, etc., then you have the chance to become exposed to national publicity i.e. newspapers ads, commercials, etc.
Popular Franchises Through the Years
Throughout the years, franchises have been taking over. The following shows the different types of business that have become most successful.
As already mentioned, Subway is one of the top five franchises of 2013, and the only restaurant of food venue in the top five. The other restaurants that have made the top ten list include Denny’s, McDonald’s, and Pizza Hut.
Other successful franchises include, but are not limited to: Anytime Fitness, Supercuts, and 7-Eleven.
Starting a new business with an unknown brand or product is risky; the success rates aren’t too high. After all, how can you compete with a store or restaurant that is already well known, like a 7-Eleven or McDonald’s? Really, you can’t. Or you can, but the task can prove to be time consuming, expensive, and unsuccessful. The perks to investing in a franchise far out weigh the cons, showing that it is possible to be successful and make a decent living owning something that has already been created and established.
This is a guest post by George Watts on behalf of Liberty Tax franchise. George is a freelance writer and financial blogger covering topics related to business start-ups.