If you’re considering business ownership, franchising might be right for you
It’s always a bit surprising how few budding entrepreneurs even consider investing in a franchise. The term “franchise” most often makes people think about fast food restaurants, like McDonald’s, or maybe an auto mechanic shop like Big O Tires.
But did you know that there are over 3,000 franchise brands in the United States alone? And, according to the International Franchise Association, there are over 100,000 individual business services franchise locations accounting for about $100 billion in annual economic output. Therefore, franchising is far more common—and lucrative—than you may have realized.
If you’re considering becoming a business owner, here are five reasons why owning a franchise may be the best option for you.
1. Track Record of Success
As previously mentioned, there are many franchise brands for would-be entrepreneurs to choose from. Some franchises are new, while others have been in business for decades.
Contrary to popular belief, starting and running a franchise system is no easy task. To gain the most benefit in franchising, you should invest in a franchise that has weathered challenges and has a track record for success. This means you will have the proven processes, knowledge, and support you need to start building your own business practically from day one.
2. Training & Operational Support
The training and operational support that you can get from a good, experienced franchisor is invaluable. Different franchise systems have different types of training and support programs, so you will have to do your due diligence to determine if it’s enough for you based on your needs and skills.
Crestcom, for example, provides our full initial training before franchisees sign their franchise contract. This gives prospective business owners as much information as we can possibly provide on what it is like to be a Crestcom franchise owner. This is very out of the ordinary in the franchise world, where prospective business owners won’t receive proper training until after they have signed a multi-year contract and paid the franchise fee (our competition thinks we’re crazy!)
Franchisees get on-going training and support from our committed team at the corporate headquarters in Denver, Colorado and from their peers around the world. We meet for regional training camps and an Annual International Meeting once per year. These meetings are a time for franchisees to connect, learn from each other, and have a lot of fun together!
3. Brand Awareness
Among the toughest things for a new business is to establish brand awareness. Without it, you are chasing down every dollar you make for at least the first few years until you gain a large enough base.
A franchise brand will have already established name recognition in the marketplace. They’re working with a brand that has been around for many years, and they’re able to pool marketing and advertising resources for promotion. Further, there is usually a good chance that you can benefit from client referrals generated from other franchisees.
4. Established Products
Any franchise system will have an established product, service, and/or process for franchisees to sell. They’ve put the financial investment into research and development—and trial and error.
This takes the development pressure off of franchisees. You don’t have to develop your own product or service as you would when you’re starting off on your own. You will have complete packages ready, so you can focus on selling and providing tangible value to your clients.
5. Proven Sales Process
Sales veterans know that being successful in sales isn’t just dumb luck or even natural talent. It’s about finding and following a process that works, then using it over and over again.
Sales processes are particularly important in larger B2B sales, including leadership training, because the client investment is relatively high. They’re not simply choosing where to get business cards printed. They’re looking for a partner that will be key to developing better teams, thereby improving business results.
A franchise system has the advantage here in a couple of ways. First, they’ve been selling the product for a long time and have a track record for what works and what doesn’t. An established franchise system will likely also have a large, global network from which to collect and test new ideas, methods, and approaches and then share the results to ensure everyone shares in successes and doesn’t duplicate mistakes.
For many, business ownership is among the most rewarding things they will ever do in their career. But the reality is that it can also be a very lonely position, where successes and mistakes are felt on a deeply personal level. Franchising won’t guarantee business success, and it won’t protect you from the challenges of being a business owner. Statistically speaking; however, entrepreneurs who choose franchise ownership over going it alone have a greater chance of success.
Are you curious about what franchise ownership looks like? Contact us today to learn more!