You dream of starting your own business, but you have no idea where to start. In that case, you should consider starting a franchise business. When you can count on your franchise store, you can be sure you will have streams of both short-term and long-term revenue.
Owning a business is one of many people’s goals. The reality is that only a few of us know how to manage it to overcome the most common obstacles and make your company sustainable.
According to a study from the National Institute of Statistics and Geography (INEGI), only 11% of businesses survive for more than 20 years, while 70% of them disappear or go bankrupt within 5 to 10 years.
Some might even have enough money to create a new company. However, this is not for sure a synonym of success. The same study pointed out that the leading cause of business closures was a lack of resources and only four percent due to instability or lack of security.
Why not opting for starting a franchise business? This business model can offer you a window of opportunities. For this reason, we have summarized in this article some of the advantages of a franchise business over a company. Keep scrolling down for more useful info.
1. Low investment risks
It is a fact that investing in a franchise is not something relatively cheap (although it depends on what brand you choose). However, the whole logic behind a franchise business will prevent most of the risks related to new investment.
First of all, the brand you will work with has experience in the industry in which they are operating. This means that you will not have to start from zero in a field you are not familiar with. Your customers already recognize the products you will sell as belonging to that specific brand. These elements will make it easier for you to obtain the maximum ROI within a period of a few years or even less.
2. Continuous innovation
The franchise brand will carry out a constant work of innovation, creation, and presentation of new products that will reach your hands without the need for you to create them.
Besides, the franchisee will receive plans and resources to improve its processes. The franchisor itself will benefit from this constant innovation with a boost in sales amount and a higher number of customers.
3. Technical assistance
In addition to the theme of change, the owners of a franchise store will receive support from the franchisor at any time they need help.
This last point is crucial for the franchisor. The better its franchise business model is working, the better the brand image the franchisor will have. This also ensures that the franchise company can keep expanding its business on new markets and attract more customers.
4. Professional training
Professional training sessions are essential for a successful business both for the franchisor and the franchisee. The owner of each franchise brand should always be committed to improving their franchise business through different types of training, including customer service and business management.
5. Access to control and evaluation systems
To improve how each franchise store is managed, the franchisor should pay periodic visits to all franchisees. This can help to evaluate their performance and decide what can be improved.
The franchises must take into account each of the tips and rebukes they will hear from the franchisor. The franchisor’s feedback can help each franchisee to boost the development of his franchise store and reach more challenging sales targets.
6. Promotion and advertising
When you have your company, you will need to undertake all the costs of advertising. As a franchisee, on the other hand, you can take advantage of the more significant advertisement campaigns organized by the franchisor.
In this way, you will not have to spend both money and time on generating and optimizing more and more engaging campaigns. Franchisors usually are big companies, and you can enjoy the benefits of promoting the same brand.
7. Belonging to a network
Even if you become a franchisee, you can keep relatively calm and don’t need to worry that much. The reason is that you will become part of a network of franchisees. If any problem arises, you will still receive real-time assistance and support from the franchisor.
Among the best franchise companies out there, we can’t stop but recommend XIMIVOGUE. Visit their website to learn more about their service and why they’re one of the leading companies on the market!