When starting a business, you may find yourself at a crossroads. Do you start a business from the ground up, or join a franchise and have the backing of an established business from the get-go? Both options are appealing and have their upsides and downsides depending on what you value your experience and your long term goals.
Either path you choose in an investment requiring thorough consideration to ensure you’re making the right decision. To help guide you on making the right business decision for you, Shoebox Books has compiled the top four benefits of joining a franchise.
What is a Franchise?
If you aren’t certain what a franchise entails, let’s start from the basics! A franchise is a business model in which an established business owner, known as a franchisor, provides a pre-developed way of doing business. In this joint venture, the franchisor sells the rights to use their company name to an independent operator, the franchisee.
What does this exchange entail? It’s usually in the form of a one-off franchise fee and any additional ongoing fees, that are often a percentage of the sales revenue. In this exchange, you get more than just the company’s name, but also a set plan of doing business, ongoing support and assistance, access to suppliers and the backing of an experienced team.
Why Pick a Franchise?
Besides being a quick way to set up a business, there are multiple benefits to choosing the franchise route. In fact with the help of a reputable and established franchise, franchisees often have a higher success rate than start-up businesses. While this may be enough to persuade you, franchising also has more rules and regulations to adhere to which may be a drawback for some. To determine whether the benefits are well suited to you, below we’ve listed the top advantages of buying a franchise.
Four Core Benefits of Joining a Franchise Network
1. Freedom and flexibility
One of the biggest misconceptions about a franchise is losing all freedom. While being a part of a franchise means you have agreed to follow the franchise way of running, which is primarily there to help you succeed, a franchise business owner can still be capable of making most decisions on how they want to run their business.
Through a franchise you have the opportunity to become your own boss, without taking on the same risks of a start-up business, providing you with less stress, debt and more freedom. As a franchisee, you have more free reign over your life, your schedule and where you work from, which makes it an ideal work arrangement for those who enjoy travelling or a regular change of scenery besides the office. You also get free reign over who you hire as a part of your team, your community involvement and your advertising budget.
2. Receive ongoing guidance
Setting up your own business can be daunting, stressful and require some risk, even if it isn’t your first business opening. But with the help of a franchise that aligns with your preferences you can have access to a proven business plan, and support including the franchisers network, suppliers, admin, insurance, finance and marketing teams.
Having access to guidance and reassurance of an established franchise is particularly ideal for new entrepreneurs who are lacking experience and are open to learning from an experienced team who can help you reach your goals.
3. Lower risks and lower failure rate
Regardless of whether you choose a solo-business or purchase a franchise, both options pertain to risks. However, in evaluating the level of risk between the two, joining a franchise presents lower risks to franchisees.
Ultimately it narrows down to the level of support and backing you have from the franchiser, who is an established business offering their guidance and support. The security a franchise offers is a trusted business model, a wide network, available suppliers and trusted advice that the products or services you’re selling are in demand.
Statistically, 80 per cent of small businesses fail within the first five years in comparison to 20 per cent of franchises, so depending on the level of risk you are comfortable with taking, choosing a franchise may be better suited to you.
4. Established brand awareness
Establishing a loyal customer base is one of the biggest challenges for start-up companies. Especially if you’re new to the business world, and lack experience in how to connect with your customers and stand out from your industry competitors.
An established franchise will provide you with a product or service that has a proven track record and a customer base to back it. In comparison to an independent start-up, you’ll also have an easier time breaking into the market with a franchise that already has recognition, brand awareness and customer base. Not only will this save you time, energy and money in your marketing efforts, but you’re also more likely to make revenue when you first open since customers are more drawn to established brands that are reliable and trustworthy.
Choosing the Right Franchise For You
If the above reasons resonate with you and you think a franchise is the right choice, your next step is choosing a franchise. During this process, it’s important to evaluate your preferences, lifestyle and income, and knowing how much time and money you can invest into your franchise will narrow down the franchises that are a good fit for you. Once you have a clear idea of your business goals, you can contact franchise owners to ensure they are capable of supporting your goals and vision as an entrepreneur.
In this stage, you’ll want to investigate their systems and the business you are investing in. Remember, a good franchise will have a track record with franchisees and won’t pressure you to sign agreements. Take your time, ask the right questions, do your research and don’t be afraid to turn down the opportunity if this first franchise you come across isn’t the right match. The right franchise will be well structured and have the necessary tools to help support you in successfully launching your business.
Choose Shoebox Books
If you are thinking about purchasing an accounting and tax franchise, look no further than Shoebox Books. To learn more about our franchising opportunities, visit our website or contact us. We look forward to having you on our team!