When researching business opportunities, a question that often comes up is: “why a franchise?”
As in, why not just start up something on your own? Sure - that is an option. Think of it as the difference between baking from scratch without a recipe vs using a mix that is known to get results. Starting from scratch takes more time. more work, more mess, and there are more chances of things going wrong. Using a mix is much quicker, with more consistent results. It’s the same thing with investing in a franchise - less mess and more consistent results.
Here are 5 reasons why franchising is a recipe for success.
1. Proven system in place.
A franchise system comes with a ready to go blueprint for how to run your business. The procedures and processes have been proven to work. By following the system, you are on track for growth and profitability.
2. Access to valuable and strategic agreements and partnerships.
When you join a franchise system, you become part of a more bigger and powerful network than you could have on your own. It’s the power of numbers. This could mean better pricing on print materials, because of the volume printing the franchisor does. It could mean better prices from suppliers. A franchise system has more negotiating power than a single business owner.
3. Trademarks, intellectual property and patents.
If you start your own business, you have the hassle and expense of protecting your logo and your company name. When you invest in a franchise, you have the benefit of operating your business under a brand which is already trademarked and protected.
4. The Trust Factor.
Being part of a franchised business immediately gives you credibility with potential customers. Your system may not be well known in your community, but people will see that you are part of an established company. An individual starting up their own little business, figuring things out as they go along, needs to work really hard to gain the trust of the consumer. However, presenting yourself as a franchise partner with an established company with successful locations operating elsewhere makes it much easier to close sales.
5. Easier to Finance.
Banks are more likely to give business loans for investing in a franchise. Bringing in that franchise agreement makes them more comfortable. The success rates of franchise businesses is so much higher than start-ups, so it’s easier to finance a franchise than it is a brand new venture.
6. Team Support.
Joining a franchise system means you get support in operating and growing your business. Starting up a business from scratch means having no peers, and no help. Competitors won’t give you advice, and friends in other businesses won’t know your unique challenges and needs. Being a franchise partner means you have a team of people available to you who are invested in your success. They know exactly what you are experiencing, and are available to coach and support you through every stage of your business growth.
With the tools, systems, and support in place - franchising is a recipe for success. That is why there are so many franchises in Canada. From the place where you got your morning coffee, to where you ordered in dinner, you are likely to be supporting a franchisee in your neighbourhood. For more statistics about franchising in Canada, read this fact sheet. For more information about the home based franchise opportunity at Concierge Home Services, contact us today.