When you think of start-ups, franchise might not be the first thing to strike your mind. But the terms "start-up" and "franchise" make a great combination. Owning a Franchise can provide the perfect vehicle for start-up entrepreneurs for achieving financial success. Here are a few reasons why franchises are gaining a lot of momentum among the start-up community.
Quick Startup
For starting your business from scratch you will be crossing many hurdles. Many start-ups face difficulties in bootstrapping their business during the initial period. By investing in a franchise, start-ups can reap the rewards of having a tried and tested business model.
Franchise also provide an additional benefit of already established supplier connections with competitive pricing. There are various service-style franchises which don’t even require real estate for their start-ups.
Guidance and support
There’s a long list of licenses and regulations every business must follow to start their venture. When your start-up is a franchise, you will be getting extensive support from your franchisor. Your franchisor will help you navigate these hurdles.
Many franchisors provide the complete package to start the business (including equipment, supplies and training) and the franchisee executes the plan. Buying a franchise allows start-ups an ideal balance between being independent and receiving guidance.
Brand Recognition
In today’s highly competitive market, Recognised and reputed brands rule the industry. Start-ups have to work hard to establish their name and sustain amidst them. Choosing a franchise makes it easier for your brand to stand out above your local competition.
Along with a reputed name, you will also get a loyal consumer base. There is an immediate trust level that comes with name recognition.
Lower rate of Risk
There are still a number of risks involved in starting a business. But buying a franchise, on the whole, is less risky than starting a business from scratch. When a start-up entrepreneur invests in a franchise, they are aware of the fact that the business model has already achieved success. There will be less guesswork and no trial and error.
This is one of the greatest advantages of buying a franchise, as you will spend less time and investment in launching your business. Even when your business is brand new to an area, the reputation of the franchise brand can create the initial word of mouth promotion, highly vital to success. Thus, there will be higher chances of success.
Scalability
One of the major advantages of starting a franchise is the scalability factor. Franchise allows an entrepreneur to expand the business more effectively and efficiently.
A franchise system is based on the principle of replicating a proven business model, they are easily scalable in multiple ways. You can scale your business geographically by starting in one area and gradually expanding to multiple locations.
