Why purchase a Franchise?

Franchising is a type of business strategy wherein the owner grants the franchisees the license to operate the venture using the business’ trademark. In short, it is an enterprise for businessmen to distribute goods and services by themselves but not by themselves. As a franchisee, you are authorized to share the company’s brand identification, distribution system, and effective marketing strategies.

When you venture into franchise, there is a tight connection between you and the franchiser. With this, both of you strive to achieve the goal in putting the business on top of the pedestal.

Nowadays, there is a tough competition among many entrepreneurs. In a wide span of categories of enterprise (e.g. automotive, fast food, hotels and motels, sports, travel, home improvement, etc.), you must expect that starting up a business from scratch is a risky one. There is a tendency for you to encounter setbacks and pitfalls especially if you are not yet prepared to set your heart into the world of commerce.

Why then would you purchase a franchise?
 Ideal for Beginners
A beginning entrepreneur can benefit from franchising a business because there of its risk minimization. Strategies in operating a business are already planned and there is a higher potential for success. You can learn from your franchiser which makes this business venture a learning experience. As a beginner, you need a wide observation on how marketing works and what are the methods in drawing more customers, and franchising is a great instructor.

Reputation
Apparently, you would purchase a franchise which already has a place in the realm of business, and thus, you will not work hard to establish the brand’s reputation. In any way, you as a franchiser already sell a product which is patronized by a larger group of customers. Thus, the continual success of the company is absorbed by the immediate success of your franchise.

Programs and Support System
The franchisers want to make sure that everyone who’s involved in the wide chain has the capability to run the business well. Hence, another benefit in purchasing a franchise is that you can attend training programs. The skills and knowledge of the company are extended until your employees, and have the chance to experience hands on training sessions. Moreover, they distribute instructional manuals to avoid failures in the enterprise and have a smooth management. As a result, the workplace you operate on would have a serene working environment.

A Ready-to-go Financial System
If accounting is not your thing, yet you are determined to own a business, walking on a tough course is not an option. When you purchase a franchise, you are provided with a ready-to-go financial system. It will be easier for you handle spreadsheets, accounts receivable, order slip, inventory management, payroll, asset allocation, and so on. The system is already uniform, and since you are collaborating with your franchiser, you careful financial management would not be misguided.

Nevertheless, no matter what kind of business you are involved with, whether a startup business or franchise, the success still lies in your hands.

About the Author:

Keith Banfield is an international professional speaker who specialises in marketing and making more profit from your business. He is co founder of Profit Mechanics and runs a media company in Australia. Through his talks, radio broadcasts and products, he has helped hundreds of thousands of people to step out of their comfort zones and achieve more…