Franchising is a Great Launch Point for First Time Business Owners
Those contemplating establishing their own business shouldn’t automatically discount the opportunities that are available in the franchise universe. Sure, barebones, entrepreneurial startups sound amazing…..spending countless hours putting together business plans, gather vital information in order to target specific demographics, take crash courses to learn necessary skills that you lack, create an image for you audience, etc. If it all works out, what a great story.
- Oh, so you already have those skills? Ok, great…as long as you are sure you have all you need.
- Ready to hire staff? Certainly, you can’t do everything on your own. If you are one of the chosen few, awesome! I would like to meet you and ask you how you can juggle everything.
- One more question: What is your business idea? If you don’t already have one, then what now?
This leads us to the final ultimatum: Would you ever consider running someone else’s business plan, still be able to say it is your business and attribute the success of it to your efforts?
Franchises are a likely conclusion if you answered “yes”. Here is why:
Ongoing Functioning Support
Franchisors are your operations support team. They know how your individual business should be budgeted in order to provide the best opportunity for success. You are supplied their playbook to provide every avenue for effective execution. They are available for ongoing support as you grow and encounter your first-time challenges. This gives you the assurance that you are not completely alone. Don’t fear asking for help. There’s a good chance they have already crossed this hurdle.
Most successful franchisors have guidance programs. Think of it as being provided a “best practices” toolkit. Not sure about accounting? payroll? hiring and firing? budgeting? Perhaps you should ask the franchisor. Often, many franchisees are new to business ownership and it is expected that you won’t know your way around a cashflow statement or payroll form for a while.
Any solid franchise system will have an assortment of pre-made marketing collateral available to all owners. They can provide examples of high achieving tactics concerning marketing campaigns. Franchisors spend huge amounts of money building and maintaining their trademark and brand. You can immediately tap into it and jump start your pre-sale activity even before your doors open.
For franchises that are not run out of your home, site selection will be vital. This will be one of the heaviest liabilities that your company will carry. A franchisor will lead you down the correct path as you weigh the balance of location and price. Through the franchisor’s historical experiences, they will be able to offer keen insight on what locations will provide enough visibility while maintaining the lowest carry costs. Often, franchises will already have real estate brokers that know the fundamentals of their system and can offer on-sight suggestions in real time.
A Franchisor gives you the opportunity to ask questions to actual franchisees. Not just one, but the entire list of all franchisees. Imagine being able to ask the actual business owners about their original business projections when they were first starting and how the results unfolded. Think about the value of being able to hear first hand knowledge and determine if you have the baseline skills and drive to be comparable to the owners that are successful. If they can execute the plan, so can you.