You already know that owning a business can be risky. Entrepreneurs and business owners face the kind of challenges that most people never have to think about. Some things, like the economy, are always going to be completely out of your control, but there are some things you can do to manage your risk level and stack the deck in your favour. Buying into a franchise instead of starting a whole new business can mitigate that risk, and here’s why.
4 Ways Buying a Franchise is Better than Starting a Business
- Finances – Financial risk is one of the biggest deterrents for those wanting to branch out on their own. Starting a franchise can help in a number of ways. Firstly most existing franchisors have relationships with the major banks, so obtaining financing for a franchise can be a lot easier than financing a brand new venture. Franchisors also have experience, so you’re not flying completely blind on your projection budgets like you would be with a new business.
- Support – One of the biggest factors for success for new businesspeople is a great franchise support network. Surrounding yourself with other business owners and people with similar ambitions can make a huge difference in your journey to success. A great franchisor will make sure you have access to other franchisees who can answer your questions and who can uniquely understand all the challenges you’re facing as a new franchise owner.
- Market Knowledge – Market conditions will always pose a threat to new businesses, industry trends are constantly shifting, and detailed market analysis is key for a successful business plan. The good news is, if you’re buying into a franchise the franchisor will already have done significant market research into both the industry and the area to properly identify market risk and help you avoid the pitfalls of a weak or over served market.
- Solid Structure – One of the biggest weaknesses of a new business is its policies and procedures (or lack thereof) especially when the business owner has little or no management experience. With a franchise, you’ll be the captain of your own ship, with the added benefit of a structural safety net including tried and tested policies and procedures, solid branding and usually an entire marketing department working on building brand exposure.
Ready to talk to someone about becoming a franchisee? Contact Kwik Kopy’s franchise team today to find out how you can join one of Australia’s top rated franchises.