A changing and diverse economy has led to continued growth in entrepreneurship. Those who desire to start their own business have access to a wide range of tools at their fingertips thanks to technology. While commonly touted statistics like “more than half of businesses will fail in the first year” can be discouraging, there are ways to survive the new business landscape.
Here are six reasons you may want to consider opening a franchise business versus one on your own.
You Have Support
Entrepreneurs who start a business from the ground up can encounter a steep learning curve alongside running the business solo. As a franchisee, you can go into business for yourself but not by yourself with a strong system in place to help you launch successfully. Freedom Lawns considers all franchise owners business partners.
A perk of buying into a franchise is the initial and ongoing training support you receive. Typically, there will be an onboarding phase in which you will receive initial training (1 to 2 weeks), business launch training, and a grand opening. During this crucial time, you can expect weekly assistance to get your business up and running successfully. The ongoing support is equally as important as the initial training as your busines matures
Throughout the year, there are opportunities for seminars, conventions, and additional trainings.
In the first year of any business, franchise or not, marketing is imperative. An independent business will not have past data to inform business decisions, thus, there will be a learning curve and potential loss of marketing dollars.
The franchisor will already be working with a marketing agency or have in-house personnel that can kick off your marketing efforts with precision. They will already have the knowledge of what works and what does not, therefore saving you advertising dollars.
Although rare, it is not unheard of for franchises to offer financing support to qualified candidates. Freedom Lawns is proud to offer 3rd party financial support to those who qualify. Freedom Lawns is also an approved SBA franchise.
Higher Rate of Success
By buying into a franchise, you get a ready-to-go business with a proven business model. Some of the best-known and well received franchises have a success rate in the low single digits. Statistical studies done on franchise failure rates show an average rate of 15%-35%. However, as mentioned above, popular franchises can fail at a rate of 1%. It is important to remember that the successful model of the franchise can only be replicated if you follow it.
The reason behind the phenomenal success rates of franchises is that the franchisor has worked endlessly to make their business successful and created a replicable model. They laid the foundation, so you do not have to. Obviously, independent start-ups will have to do their own groundwork and at their own peril. Franchise partnerships can minimize the trial and error approach which can result in wasted expenses.
Lastly, a well-known and reputable franchise will have achieved significant brand awareness which allows you a greater chance of success.
You Become Part of a Team
As a franchisee, you become part of a team working together towards a common goal while offering support to one another along the way. A new franchisee can tap into this network to ask for advice and to connect with someone like them. As a brand, this network holds more power and recognition than that of a single owner.
Handbook to A Proven Model
A common mistake amongst entrepreneurs is trying to figure everything out by themselves. A franchise allows you to bypass the frustration and headache by avoiding the mistakes that happen with a new business.
Once the franchise fee has been paid, the franchise will onboard you so you can start as soon as possible. The training will teach you the business model you will need to achieve their replicable success.
One of the biggest benefits of a franchise is the brand awareness among consumers. A reputable franchise will have established a recognizable name among consumers, which you can benefit from. People prefer to do business with and buy from brands they trust. As the franchise system continues to expand, the exposure from marketing efforts will continue to drive brand forward.
All this to say, the established business model and level of brand awareness will net you a quicker return on your investment.
Franchises can be less expensive than a start-up because they are less likely to make the same costly mistakes that happen with a start-up. To put it simply, franchises have done the work to know what works and what does not.
Here are a few cost-saving benefits that franchises can offer:
- Buying inventory
- Pre-designed marketing materials (logos, brochures, ads, etc.)
- Contracts and special terms with supply vendors
- Savings on equipment
- Discounts on product
Interested in opening a Freedom Lawns Franchise? Download our no obligation, free brochure to learn more.