People often have dreams of owning and running their own business, but going into business for yourself as a restaurant or shop owner can be scary. One way to keep the risk low is through franchising. Franchising is almost synonymous with success. Franchised businesses do better than non-franchised companies, not just because of the brand name.
William Schantz suggests, if you are thinking about getting into business for yourself but are worried about how to find success when so many small businesses fail, a franchise might be your smartest bet.
4 Reasons Why Franchising Is a Smart Business Solution
Here is why franchising can be an ideal business solution — and how to get your business started.
1. You Get a Proven Business Model
Franchising is based on the concept of replicating, or cloning, a successful business model. This means all the hard work has already been done to get started straight away.
2. You Are in Safe Hands
Good franchisors provide training, support, and guidance to their franchisees. They want their franchisees to be successful because this success reflects well on them.
3. Brand Awareness and Recognition
If you buy into a franchise with a good reputation and an established brand, you will have instant credibility. Customers will recognize your brand immediately and have confidence in it – confidence that you would have to spend thousands of dollars on advertising to acquire if you were starting your own business from scratch. According to William Schantz, this is why franchising is a smart business solution.
4. Finance Is Easier to Obtain
It is much easier to get financing for a franchise than to start your own business from scratch because there are fewer risks associated with buying into an existing business model with proven success rates. Banks tend to prefer lending money to people buying into a franchise because they see these businesses as lower risk than independent start-ups. If you want to invest in a franchise but do not have enough funds, banks will be much more willing to lend you the money you need to invest.
How to Start a Franchise?
1. Look out for a business you are passionate about.
2. Calculate the investment.
3. Write a plan for financing.
4. Study the territory you want to serve.
5. Get advice from local experts.
6. Conduct due diligence with several franchises.
7. Carefully review the Uniform Franchise Offering Circular (UFOC) and the franchise agreement.
8. Train and support your team.
Get Started Today
If you are interested in starting your own franchise business, William Schantz encourages you to act immediately. Today’s franchising market is more significant than ever before, and there are new opportunities to be found every day. Start on your first step towards a franchise business by downloading Franchise Gator’s free Franchise Report below. In it, you will receive the essential information on which franchise businesses are worth your time and what franchisees have the best growth potential.