Yearning to ditch the nine-to-five grind and be your own boss? The appeal is understandable – who wouldn’t relish unlimited earning potential while calling the shots on their schedule and passions? However, statistics reveal over 20% of small businesses flop within the first year and over 50% by year five – sobering odds for aspiring entrepreneurs.
After walking countless hopeful owners through the process of expansion through franchising for over twenty years, one advantage stands tall from the rest – franchises boast significantly higher survival rates compared to independent startups. The proven business model, ongoing training and support, established supply chains, marketing firepower, and instant brand recognition confer game-changing advantages from day one.
Still weighing taking the franchise or independent plunge? Consider five compelling benefits to joining an existing franchise family before going all-in on a standalone operation.
Speedy Success
Opening a franchise location taps directly into an existing flow of customers the moment doors open. The brand recognition and goodwill created by national marketing propels faster profitability from the outset. Let’s face it: going solo is tough. For independent launches, the climb to the top is long and arduous, requiring a deep understanding of the market, a contagious passion, and the stubborn persistence to keep pushing forward, no matter what.
Built-In Support Structures
Independent owners need to independently source suppliers, design marketing campaigns, train staff, and work out kinks in operations – often through painful trial and error. Franchisees gain instant access to refined systems and procedures for smoothly running their outpost backed by trained corporate teams. Responsive home offices quickly resolve concerns, provide technical guidance, alert owners to new promotions, and more.
Predictable Earnings
Since existing locations with a similar model have a financial performance track record, franchisors provide new franchisees detailed revenue projections based on historical averages, taking the guesswork out of budgeting. Independent owners only have industry benchmarks to loosely base expectations on without the case studies of similar businesses in that brand family thriving across varying markets nationwide.
Lower Failure Rates
With only a 1 in 10 failure rate for franchise outlets across all industries, the structured format provides a clear blueprint for success compared to over 50% of independent restaurants, retail shops, and services fizzling in under 5 years. Owners benefit from corporate research that validates the concept and optimizes systems, enhancing the changes of prosperity decade after decade.
Financing Edge
When approaching lenders, the backing of a known franchise brand converts into easier access to startup financing – banks feel assured by the proven business model. On the contrary, entirely experimental concepts often struggle to secure loans without such a track record, forcing owners to drain personal accounts or take on partner investors, relinquishing some control.
While no business launch is guaranteed or without risks, becoming part of an existing franchise family stacks the odds for victory markedly in your favor as an aspiring small business owner. A seasoned franchise consultant can be your Ace in the hole, helping you snag a deal aligning with your passions, skills, and lifestyle aspirations. Partner with a pro and discover the franchise world’s endless possibilities today – get in touch with Upside Franchise Consulting Group today.
