Franchises are an appealing option for many small business owners and the draw toward franchises is not unfounded.
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In fact, franchising offers a number of important benefits for entrepreneurs with a desire to enter the small business marketplace. Before you rule out franchising as an option for your business, it's worth your time to take a look at the benefits they have to offer.
A Proven Business Strategy
A big benefit of franchises is that they offer business owners a proven business strategy. While many new businesses struggle to develop a viable and profitable business plan, franchises have presumably already demonstrated that they are capable of profitability time and time again.
Granted, you still need to do your own research to confirm the potential of the franchise you ultimately decide to purchase. However, in most cases franchise companies survive on their ability to ensure profitability for their franchisees.
Franchises also offer business owners the advantage of name recognition. Usually it takes years for startup businesses to establish their brand in the marketplace, and even then there is no guarantee that consumers will recognize them as a leader in their industry. Franchises, however, can potentially provide business owners with instant name recognition. Although this isn't always the case – especially if the company is new to the area – franchisees frequently experience exponential growth in name recognition as the franchising grows and expands.
Pre-Established Supply Lines
Establishing dependable relationships with suppliers is another challenge new business owners often face. A lack of adequate supplies can cripple your operation's ability to do business, killing any chance your business has to succeed. Franchises usually offer a reliable avenue for supplies to franchisees. Not only do they have pre-established relationships with suppliers, but many franchisors also sell supplies directly to their franchisees.
Training Programs & Employee Policies
Yet another benefit of franchisees is that franchisors usually provide employee training programs for their franchisees. These training programs equip employees (and franchise owners) to do their jobs efficiently and effectively. This can be a big help for new business owners because company trainers can often offer a more professional training program than the owner could if she were to do it on her own. In addition to training programs, franchisors also provide employee policies and procedures that are critical in keeping the workplace running smoothly.
A Built-In Support System
Finally, franchises provide new business owners with a built-in support system – a safety net to assist them in building a business they can be proud of. This is a particularly important benefit for business owners who have little or no experience in business ownership or business owners who have limited experience in their industry. Before you decide on a specific franchise, talk with the franchisor representative about how much support you can expect to receive after you start doing business. In most cases you'll find that the franchisor will be willing to help you as much as they are able, every step of the way.