Thinking of starting your own business but unsure of what route to take? Do you have a passion that you feel is going to waste? Do you simply want to try something new? If the answer to all of these is yes, then perhaps getting involved in a franchise is something you should consider.
I doubt you expected a franchise to be a suggestion, but they offer countless opportunities and benefits for budding entrepreneurs. There is a huge host of opportunities for Growth and expansion if you take control or start a new franchise in your area. One of the main benefits is that you start with an already established well-branded company.
You don’t have to struggle with competitors, licensing and a whole host of other headaches which come along with starting your own business.
There are franchise opportunities in almost every industry. Depending on your capital and level of interest the benefits to a franchise can be enormous, however, like all business models, there are risks and limitations involved.
So, you can have a more informed decision we have listed several other advantages and disadvantages associated with entering a franchise. Of course, you can already see that we believe the benefits far outweigh the negative aspects, but of course, the final decision rests with you.
- You have the freedom of a small business owner, but with the support of a large business network.
- It is much easier to secure finances for a franchise than most other start-up businesses.
- This support network will allow you to enter industries that you had no previous experience in. Training and all the knowledge that you could need will be provided for you, providing you with a successful launch position.
- As already mentioned there is less risk in a franchise than a start-up and a company with a successful reputation is ideal for your future success.
- There may be limits on where you can operate, the suppliers you use and advertising restrictions etc.
- By entering into a franchise, you will have to adhere to the formal arrangements set aside by the franchise.
- You will have to share profits with a franchise meaning you do not have full monetary independence.
- The performance of other franchise members may affect your business and vice versa.
- Although it may provide a safer and more secure avenue into starting your own business the constraints imposed by a franchise and a lack of knowledge in the industry may prove detrimental.
Like any decision, it’s important to study and learn as much about the business. A well-informed decision will lessen your financial risk and improve your chances of success.
It’s also important to see the current market position in your area. A franchise may work in one location but fail in yours due to slight differences.
Across the UK budding entrepreneurs are entering franchises and studying the market. It can be a great long-term investment especially for those wishing to diversify their business models or enter entirely new businesses.