Many of us kick around the idea of opening our own business from time to time. It can seem like a great idea on the surface. You get to be your own boss, make your own decisions, and hopefully become very wealthy if everything goes right. However, the next wave of thoughts can bring you back to reality. Starting a business can be very costly, take up all your time, and there is real possibility that it fails.
Opening a franchise business can be a good alternative to going into business all on your own. You’ll follow a plan that has already proven to be successful and have on-going support from the franchisor. In this blog post, we’ll explore five advantages of opening a franchise business:
1. Limited risk
Starting a franchise can be much less risky than pursuing your own business idea. If a franchisor is opening new locations with new franchisees, their company is likely doing well.
Furthermore, the franchisor probably employees smart people who have analyzed and weighed the risk versus benefit of growth. It’s resources like these that franchisees have access to but the typical small business owner does not.
2. A clear vision of the business
You might have a business concept in mind but only a vague idea of how it would operate. You don’t have the same guesswork when you’re preparing to open a franchise business. You’ll be given directions on how to operate, so much of the trial and error new businesses go through will be avoided. You’ll also know what the branding and store design will look like so you’ll always have a clear vision of the look and feel of the business as you prepare to launch.
3. Insight into startup costs
One of the scariest parts of opening a business is paying for all the startup costs while you wait for consistent revenue to start coming in. You can create a business plan and estimate costs but it’s not uncommon for unforeseen issues to arise, especially early on.
Franchisees fortunately are given insight into startup costs. The franchisor must include initial fees and investment costs in the Franchise Disclosure Document (FDD) they present to potential franchisees.
4. Help selecting a location
It’s often said that a business’s success is greatly influenced by its location. However, there is so much to consider when selecting a location for a new business and little you can do if the space you chose doesn’t meet your expectations.
Most franchisors have a plan for growth and future locations mapped out. When you inquire about launching a franchise, they’ll likely help you select an ideal area and store space.
5. Guidance from the franchisor
Once you sign on to become a franchisee, the franchisor is going to do everything they can to help you succeed. They’ll not only tell you the best way to operate, they’ll likely also provide guidance that can help you become a better business owner. That could include training on financial recordkeeping or advising on what technology to use. It’s in the franchisor’s best interest to help all their franchisees thrive.
BookKeeping Express (BKE) provides accounting and bookkeeping services to franchisees and multi-unit business owners in a variety of industries. Visit our industries solutions page to learn more.