Going Into Business For Yourself? You May Want To Consider Franchising.

There are many different reasons that people decide to start their own businesses.  Sometimes there is an idea that is just too great to pass up or an opportunity in the marketplace presents itself. Other times, there is simply a desire to be one’s own boss.  But where does an inexperienced business owner start?  Even those that have worked in business for many years face a daunting to-do list when starting a company.

Franchising can be a great option for a someone that seeks to have the flexibility of their own business while avoiding the inevitable learning curve to starting a company from scratch. The structure and experience of your parent company (franchisor) is there to guide while offering flexibility for your personal ideas and choices within your franchise business.

If you are thinking about becoming a franchise owner there are some things to consider:

1. Franchisors provide you the support and training you need to get started and be successful. The general practices and the overview of the business workings remain unchanged between franchises. Where the franchisee (you) has the most ability to change is in your specific franchise branch. Some things can in the business can be adjusted, while some are company policy. When deciding on a franchise, make sure you understand your options.
2. Franchisors provide a variety of services in the beginning of a relationship but tend to back off some once your franchise is up and running. From location selection to hiring and training, the franchisor knows what it takes to be successful and will set you up with all of the tools and people you need to get there. After you are established the relationship does not disappear, they are still there for franchisee questions, marketing campaigns and other corporate duties.
3. You still “own” your own business. The same stressors about money, clients and staff will exist. Be prepared to work hard, but also know your parent company has support staff to help.
4. You are buying into a company whose customers already have a set of expectations. With a franchise, a customer may have already had experience with someone else before you come along and will likely work with franchisees after you. Consistency in products, services and customer relationships is the key to keeping customers happy and coming back. This is where the parent company’s rules and regulations become very important. A customer should be able to go to any franchise location and get the same product with the same friendly service, anywhere.
5. This also means if someone has a bad experience at one location, they may not know to try another and therefore will never return to the company again. Reputation management is exceptionally difficult in franchises for just this reason.
6. Lower investment can mean lower risk. Buying a franchise is immensely less expensive than building a business from the ground up. You will pay a franchise cost and buy the rights to use the franchisor’s name but overall it can be a safer way to invest. The support and knowledge of the franchisor is invaluable, use it when appropriate but know sometimes change is necessary.

Being a franchise owner can be just as challenging and rewarding as starting your own small business. When you are deciding what route to take, franchise or independent, make sure to consider all of your options and the costs of each. By determining your expectations first you have an opportunity to manage them and make the most informed decision possible.