There will always be an element of risk associated with doing anything new. Buying a new house, starting a new career, new marriage, new baby, new travels—you name it, life is full of newness and risk. Despite the risks we face when taking leaps in business or our personal lives, there are areas where risks can be minimized with some well thought out research tactics.
Take for instance the franchise business model. A newly franchised business model, especially a young business, offers investors access to something fresh. Though no business venture is without risks, even when dealing with a business that’s survived many years, newer concepts can take heat for their being, well, newer.
Identifying which franchise businesses offer a worthy balance of security and risk isn’t always easy. Of course years in business with a good record of satisfied franchisees is a start, but what if your dream franchise doesn’t have years in business and a pool of franchisees to consider in the first place?
Let’s consider an analogy involving a set of three siblings to introduce some of the ways that longstanding franchised businesses are able to pass on their business management and operation skills to new sister companies.
Say there are three brothers, two of which have a few years between them in age, and the last of which having come along well after the first two. Could it not be argued that at some stage in his life the final brother will have benefited from the hard earned knowledge and experience of his previously born older brothers?
It’s often said that the last born child “has it the easiest” and there’s certainly reason to ponder the truth of this idea as it relates to sister companies that develop out of another business with a longer lifespan.
Like a family, sister companies thrive in succession, with longer running companies benefiting the newest members of the family with their hard earned knowledge and experience. Franchise systems that are born out of a heritage of business acumen receive the benefits of a paved path that cannot be denied.
This doesn’t necessarily make every new sister company successful nor does it mean that only those franchise businesses coming out of an existing business family are worthy of attention. Likewise, newer family members can inherit the same weaknesses as their predecessors if they lack the insight to change them. This can be true in the world of business as well.
Interested in checking out a couple of sister brands to get an idea of how this works? Maid Right, sister company of longstanding JAN-PRO, is one example of a rising newly developed company that’s steadily benefiting from an experienced team steering the ship of the business. Another business walking in the footsteps of a long running business is You Move Me, a moving franchise that’s taking an entirely new and appealing approach to helping people move from one place to the next.