Whenever individuals want to be their own boss, the first thing that comes to mind is owning a business. However, starting a business from scratch is one of the most challenging tasks that require a lot of time and capital. This is why most individuals prefer choosing a business franchise instead of doing a startup.
Franchises to buy, such as shop front restaurants or drive-thrus are some of the best franchise ideas in the market today, and it can be a viable alternative to a startup business. If you have been planning to start a business soon and have not yet decided what to do, here are four financially-savvy reasons to invest in a business franchise.
Offers Both Independence and Network Support
One of the disadvantages of starting a business from scratch is that you won’t have any connections and won’t receive any network support. This isn’t easy because you will not have any access to helpful information from other business owners or organisations. Fortunately, investing in a business franchise provides a solution to this predicament.
According to an article by Entrepreneur, having a business franchise allows the franchisee to experience benefits from a larger group of business owners. These benefits may include helpful information in running the business, advertising resources, and business network, while still having the independence of business ownership.
Business Franchises Have a Higher Chance to Succeed
According to reports, more than half of startups fail because of lack of capital and profitability, and more than half fail because of the lack of marketability. This means if you decide to start a business from scratch, you will have a higher chance of failing than succeeding, which is unappealing. Fortunately, the statistics are not the same as business franchises.
Franchises have a higher success rate compared to business startups. According to reports, franchise establishments account for a significant percentage of retail sales in the country. Franchises to buy, such as a restaurant drive-thru presents a better chance for success than other businesses, which is why it is something that you should consider.
Business Franchising is a More Affordable Option
Business startups require immense capital. You may need to spend a great portion of your savings on starting it off the ground. However, you can also decide to apply for a loan or business financing to lessen your expenses, but be prepared to pay for possibly high-interest rates. If you don’t want to spend a huge amount of money, business franchising could be a better option.
Compared to business startups, buying a business franchise is relatively inexpensive. This means you won’t be spending a huge amount of your savings when you start the business. Also, you will find it easier to secure financing from banks, and you won’t have to pay for high-interest rates because the conditions of the loans will be better.
A Business Franchise Has an Established Reputation
Brand presence is an important aspect of any business because it affects the marketability of your products. When you begin a business from scratch, you will have a difficult time building your brand because you have to work on your business reputation. This is not the case with a business franchise.
Business franchises already have an established reputation, which means they already have a strong brand presence. You will no longer find it hard to sell products because the public is already aware of their quality. This is a great advantage as it instantly affects your sales revenue and income.
From the reasons mentioned above, business franchising is undoubtedly a better option compared to startups. Business franchising is one of the simplest ways to go into business, and when partnered with good management, it can instantly guarantee your financial success. Check out a reputable franchise business today and start your dream of becoming an entrepreneur!