Updated: November 16, 2022
Being able to start your own business is always a great achievement. But it is also a difficult challenge, especially if you have no prior experience in entrepreneurship.
Some of us may have the courage and the determination to go out and build a new venture. However, not everyone can afford the risk, have the time nor possess sufficient knowledge to start a business from scratch.
Fortunately, there’s always the option of franchising a business.
There are many definitions of what franchising is. My favorite would have to be the one that says franchising is a form of leverage that allows a person to start a business quickly and efficiently.
By leverage, it means being able to use the resources, skills, and knowledge that other people had already learned to start a business. Simply, franchising allows you to take a shortcut to start a business. But only if you’re willing to pay the price.
Franchising a business is indeed much more expensive than starting one on your own. But with that cost also comes great advantages, five of which are given below.
A ready and tested business model
One of the most challenging tasks in starting a business is engineering the processes within.
When you buy a franchise, you are automatically getting an already running and proven effective business model. And all you have to do is follow an operations manual.
Franchising a business allows you to save time and already get started on running your business, so you could earn income sooner than designing one on your own.
Skills and knowledge training
Before franchising, a friend of mine has never cooked a hamburger in his life, but he does love eating them.
So when he became a burger joint franchisee, he felt so good and proud that he does not only know how to properly cook burgers but he also now knows how to actually make one from scratch.
Buying a franchise allows you to upgrade your skills and knowledge through training and seminars, which of course, you can later on use for other possible ventures.
Implement efficient marketing strategies
Have you ever seen a business logo or a store sign that looked weird and uncoordinated? Or a business name that sounded awful?
Chances are, the owners of these businesses didn’t have any marketing knowledge because if they did, they would know how important those are in giving a good first impression to customers.
When you become part of a good franchise business, you wouldn’t have to worry much about sales and marketing strategies. Because these tasks, which include market research, planning, and brand building are already being done for you.
And all you have to do most of the time is to implement them!
Have business technology within reach
It pays to be good with numbers if you’re an entrepreneur, but not everyone should spend their nights punching numbers endlessly on a calculator.
With a business franchise, you get hold of payroll, inventory, and other programs and software that will help you focus more on business development and less on crunching figures all night.
Buying a franchise business can be expensive, but that’s only because you’re paying for the technology that will allow you to have the time to do more for yourself and your business.
Being part of a family
When sales figures are low, a small business owner usually has no one but himself to depend on when thinking of strategies that will improve his profits.
But a franchisee has a network of co-business owners whom he can ask for input, feedback, and support.
A franchisee is never alone because he is always guided by the mother company and supported by other franchisees who are united with him in pursuing business success.
Ready to discover more about franchising? Then check out these articles:
- Start Your Own or Buy a Franchise Business, How Do You Decide?
- Buying A Franchise Business: How To Know If You’re Ready
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I think Franchising is perfect for those who would like to start their business immediately with less worries. There’s a tested system already and if you truly believe in the product, it wont be difficult to promote them. Starting your own business from scratch can be risky, i think. I want to own a Plato Wraps franchise soon and something related to Milk Tea. 😀
Starting a business through franchising does make sense. The beginner who starts a business on his own can easily be overwhelmed with all the issues that need to be addressed. With franchising a lot of these have been worked out already. Thanks for the article. It helped me make the decision to start a business through franchising.
How I wish I could say the same good things about Franchising but having a bad experience with a franchising company has turned my hopes down using this business model. I did a lot of research about Franchising and was utterly convinced that it was the best step into entering the business world but I learned the hard way that thought it might be the best idea, it doesn’t mean that it will equate to success. There are other business models available with less capital which will not consume much of your time as well so it is really a must to check out all other options available if you want to have your own business.
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[…] if he had that much money, he’d quit his job and find a less stressful one or probably just franchise a business. He’d also buy his dream house, and secure the educational future of his […]
When I returned to my home state from college, a friend was working for a very popular franchise chain. His enthusiasm convinced me to give it a try. This chain was considered “the king”of it’s industry. There were a mixture of franchised and corp stores in our area so I had a chance to talk with and observe a few franchise owners.
Because of the rapid turnover (at that time 33% turnover rate) in the industry, I was very soon a manager but honestly, I lacked the proper training due to the fast pace of the business in general. Now, as a manager, I was able to closely observe the management culture during lengthy monthly meetings in the district office. After a very long meeting, it was off to the bar at a local hotel for an all night drinking session and then crawl back your position as manager after a quick shower.
My future first wife had joined in and we were seriously considering franchising until we had seen these manger’s meetings up close and personal. Meeting over and out came the drugs on the short ride over to the hotel to begin the all night party. Now, while franchise owners were NOT obligated to attend the mandatory corp store manager’s meetings, I am super thankful we had the chance to see behind the curtain during my time as a store manager. My future bride and I determined that we were NOT comfortable having the management that we observed as our backup since these same individuals would be our field reps also.
My then future wife went on pursue her passion and enjoyed a wonderful career where she rose to the top of her field and was recognized as one of the best. I continued working on real estate, operating several small contracting services and eventually developing a small organic farm. We never looked back and I will candidly state that until the day (16 years ago) my first wife passed away, we never regretted walking away from this particular franchise opportunity.
What we learned and the advice I will share: If at all possible, try to work for (as a regular employee) the franchise you are looking at. If you score a corp store manager’s position in three months or so, good for you, learn and observe. It is wonderful if your partner can do this while one of you continues your regular work so you have no pressure to make a quick decision.
Observe the business closely to see if it aligns well with your goals and, as in our situation, your moral values. Sometimes, because you all have the same training, you may get a chance to work for both corp stores as well as help out a franchise owner. This is a great oppertunity to see the differences and really get to know the business from both angles. I would say that you should have a good idea what you are really getting into after six months, maybe less. This is super important with franchise fees often running into the hundreds of thousands of dollars and some into the millions in the US. My guess is that fees for the big and well know franchises are also high here in the Philippines.