Looking to Start a Business? Buying a Franchise is a Better Option
Every year, many thousands of ambitious entrepreneurs launch a new business. But, starting a small business can be a difficult process, especially for someone who has never run a business in the past. And plenty of small business statistics show that by the end of four years, around half of them will be gone.
People start new businesses for a variety of reasons:
- 26% want to be their own boss
- 23% want to pursue their own passion
- 19% say the opportunity dropped into their lap
- 12% are dissatisfied with corporate America
- 6% are laid off
- 6% are just not ready to retire
And yet, according to the Bureau of Labor Statistics, out of all small businesses started in 2014, 80% survived the first year, 70% made it the third year, and only 56% survived through the fifth year (2018). According to these numbers, the startup failure rate at four years is approximately 44%.
Why is Franchising so Successful?
While discovering a hard number for the survival rate of franchises seems difficult, some statistics claim that franchises have 85% or 90% 5-year survival rates across the board. Whatever the hard numbers actually are, Buying a Franchise with reliable track records are always going to be safer than starting a new business from scratch.
Here are some key reasons why buying a franchise is a better option than starting a business on your own.
Franchises are a Turnkey Business Opportunity
When buying a franchise from an existing company, you are essentially purchasing a fully-functional, established business. The buyer invests their capital and time to establish and operate it in a new location. Training is provided to learn proven processes and practices that work anywhere. Research and development have already been conducted and you benefit from all the questions being answered and potential problems solved before you invest.
Franchising is a Proven Business Model
Franchising simply works. It is a time-tested, successful model of expanding an existing business and starting new ones. Almost any business can be duplicated and franchised in a variety of locations and markets. The fact that franchises have a higher overall success rate than other small businesses is concrete proof that franchising is a proven and profitable business model.
A Local Franchise is Connected to a Strong Parent Company
Many entrepreneurs purchase a franchise because they like the idea of being part of a larger organization. There is an umbrella of structure and support that guides every aspect of the franchisee’s business. Almost nothing is left to chance. The strength of the existing company brand and the solid patronage of dedicated customers are already in place. Those are great benefits on which to build a new business.
Franchise Units Hold a Higher Value
Because of the strength of the parent company, franchise units are consistently valued higher than other similar independent businesses. The connection to a vital brand adds significant value and a measure of guaranteed success, something other small businesses simply do not have.
Franchisees Benefit from Built-In Support and Training
Every small business needs help and training. A franchise is provided both initial and ongoing training and support as they launch and grow their business. In most cases, the parent company has already figured out the solutions for most problems that will arise with their franchises and can help new units navigate through them with ease. Even when unexpected issues arise, the corporate entity is there to provide help and support.
Franchise Investments are an Attractive Risk
Although franchises cost an initial investment to launch, that cost is typically lower than starting a small business independently. Moreover, lending institutions see franchises as a favorable risk because of their stability, success rates, strong parent companies, and overall higher value. Financing a new franchise is simply a good risk. Also, some parent companies provide financing to open their franchises, making it even easier for entrepreneurs to open a franchise location.
Get Started with Franchise Guardian
Are you ready to explore the options of purchasing a franchise business? Whether you are looking for a low-cost franchise opportunity, mid or high, Franchise Guardian has an opportunity for everyone. Discover premium brands, become your own boss in a field you enjoy, shared with a commonality and interest with like-minded entrepreneurs.
Choose opportunities from the following 30 industries:
Accounting, Advertising, Automotive, Business, Children, Cleaning, Coffee, Computer, Consultant, Courier, Staffing, Entertainment, Fitness, Food, Beauty, Senior Care, Home-Based, Industrial, Shipping, Moving, Pet, Photography, Real Estate, Security, Sports, Restaurant, Taxes, Training, Travel, or Vending.
If you’re interested in learning more about starting your own business by investing in a new franchise opportunity, contact Franchise Guardian by phone or online today.