People buy franchises these days for a lot of reasons. What’s your reason for at least thinking about becoming the owner of a franchise?
Let’s look at some of the most common ones. See if your reason is listed:
- A desire for more freedom/control
- You’re sick of feeling like a cog in a wheel
- You want to work hard for something you own
- You want to build something you can call your own
- You want to have a business your family can participate in
Is your reason listed above?
More Reasons To Buy A Franchise
What about the franchise business model itself? There are several great things you get with a franchise. Some of them may be why you’re considering franchise ownership over independent operation:
- Group purchasing power
- Existing business systems
- Formal training
- Existing marketing/advertising plans
Those items are pretty attractive. They’re great reasons to consider franchising, especially if you’re comparing potential franchise business ownership to independent business ownership.
From a Franchise Direct article:
"An independent business operator takes on a lot of risk when trying to launch a new business. Starting a business from scratch is hard work, and more than half of new businesses fail to become profitable. While the risk is not completely eliminated, the franchise model can help a wannabe business owner be successful."
Tip: It’s important to know if you’re the right type of person to own a franchise.
There are an awful lot of rules to follow. It’s not you’ll be able to get too creative if you become the owner of a franchise business.
For example, you can’t start selling cupcakes out of your dry-cleaning franchise business. You won’t be able to offer pest control services from your disaster clean-up franchise business. So, make sure you’re comfortable with lots of rules.
Yet Another Reason -- And It's a Big One
I have another reason for you to buy a franchise. It’s not one that’s often mentioned by would-be franchise owners.
It’s speed. Speed to market, to be exact. Think about it.
If you start your own business, it’s going to take you a lot longer to put everything you need together to get your business up and running. You’ll have to figure out how to do everything…a lot of it on the fly. You’ll have to test lots of different marketing ideas. You’ll have to figure out pricing. You’ll have to continually put money into your business until you find the right formula for success. Maybe you can operate like that. Maybe you want to. If so, fine.
With a franchise, however, you have a very good idea of what your investment is going to be, before you do anything. Plus, the system you need to set up a business is already in place. You shouldn’t have to do much testing. Just small adjustments to fit your territory. Make sense?
When I do franchise seminars and classes, almost always, someone chimes in with, "I don't understand why anyone would pay a franchise fee plus all those royalties for something that they could probably do on their own."
My answer to them:
"You're right. You probably could do something on your own. But, how fast could you get your business to market? How many mistakes, potentially expensive ones, will you have to make before you get things right? With a franchise you don’t have to spend all that time to launch a business. You can be in business quicker with a shorter learning curve. Why wait?"
If you’re thinking of taking control of your life by being your own boss, the topic of speed to market needs to be front and center. Consider this: How long can you use your current savings to live off of before your business, franchise or otherwise, begins to turn a livable profit?
Franchising brings a lot of great things to the table. Speed to market is only one of them.
But, it’s a big one. As they say, time is money.
The Franchise King®, Joel Libava, is a franchise ownership advisor. He’s the author of Become a Franchise Owner! (Wiley Publishing) and owns and operates Franchise Business University. Joel contributes a blog post to Franchise Direct monthly.