People often talk about the American Dream. One way to achieve this dream is to own your own business. There is a problem, though. Being an entrepreneur is much more complicated than it was when the notion of the American Dream was first created. In just about every industry, the market is more complicated and competitive than it has ever been. It is a fact that most small businesses fail within a few years of their inception.
This is why franchising is so popular. It gives individuals the opportunity to own and operate their own restaurants, car repair franchises, and other businesses without risking everything they own. You may be surprised at how enjoyable it is to run a franchise. Here are 4 reasons you should consider it.
1. Lower Risk – Because you are selling a proven product that has had success, you are taking less risk. It also cuts out many of the beginning stages of marketing and product development that are extremely costly for a company. Leverage a franchises previous success and proven marketing protocol makes it easier to succeed in a terrestrial marketplace like the retail environment.
2. Financing – Because you are selling a product with proven success, your odds of being successful are higher. Banks are more likely to give you the funds you need to get your business off the ground if you a starting a franchise versus your own company. Often, the interest rates are lower as well.
3. Competition – Companies won’t let two of their franchises be opened within a certain distance of each other, making sure the competition is spread out in a way that all of their locations will have a good chance to succeed. This is not something you can police if you are opening your business.
4. Growth – Often, you can purchase more franchise locations as you get more and more successful. This means you can grow a business in the same way that you would if you were growing your own product. There are plenty examples of being opening multiple stores under the same franchise umbrella and multiple franchises across different companies.
The key to having a successful franchise location is selling a product that you have experience with an enjoy. Being passionate about something is a tried and true way to inspire yourself and drive yourself to work hard. Check out becoming a franchise owner if you want to own your own business but aren’t sure about the risks involved.