Why do many dream of becoming business owners? Often, it’s because people are looking to find a more fulfilling career path. They seek more purpose, autonomy, and status. People who are dissatisfied with their current careers want more flexibility and freedom in their work lives. They also want to find a meaningful job that still gives them status and respect. Becoming a business owner can tick all of these boxes.
However, there are certain risks involved in starting your own business. It’s not easy. There are countless hours of work, dedication and patience one needs to put into starting a new business. On the other hand, buying a franchise of an already established business gives you those same outcomes, with an often better experience. It can give you the fulfilling career you seek but in a simpler way.
Here are some reasons why you should think of buying a franchise instead of starting your own business.
A tried and tested model
A business that is able to be franchised means it’s a business that already has a structured and effective business model to follow. Their processes have been tried and tested to be successful and profitable. As a franchise owner, you’ll be running a business without having to go through the gruelling process of creating and implementing a business model.
Franchisors will usually have operation manuals and official training for their franchisees that encompasses the marketing, accounting, policies and operations of the business. It saves you time, effort and money as you avoid that trial and error phase of running a business.
You won’t worry about brand recognition
Buying a franchise means buying an existing brand. You skip having to develop from zero brand awareness, recognition and loyalty – extremely valuable assets in any business. This makes it easier and faster to get leads. You have more of a possibility of referrals from existing clientele and go straight to servicing those customers. No need to worry about whether or not your product will sell, how you should sell it and who will buy it.
Still your own boss
If you dream of working for no one else but yourself, you still can as a franchise owner. You can be your own boss while minimising the risks and maximising the opportunities. You make the daily decisions yourself and lead others but under the safety of an established brand. When you own a franchise, you bypass those endless hours with no support that new business owners feel. You can achieve your goals quicker.
The data speaks for itself
With over 94,000 official franchised businesses, Australia has more franchise outlets per capita than any other country besides New Zealand. While the Australian Bureau of Statistics states that around 60% of small businesses fail within the first three years, it has been said that franchises have a failure rate of only 20%. Much of the success is attributed to the support system and the already established business models. As a franchisee, your risk of failure is lower than if you were to start your own business.
You won’t be alone
Many people dream of working for themselves, by themselves, but underestimate the need for support. Starting your own business can be daunting. You have to take on all the decisions and responsibilities, and the burdens that come with them. As a franchise owner, you get a certain level of support and resources you wouldn’t get by starting your own business. With the franchisor or other franchisees, you already have a team guiding and helping you make decisions instead of going in alone. Even though you are growing under a common brand with a group of other business owners, you still get to own and manage your own business.
Less about the competition
Joining a franchise means joining a network of other franchisees going through the same thing you are. All franchisees will follow the same ‘recipe’. This means you’ll have people who know how to support, motivate and guide you and vice versa. Under a franchise, running a business becomes less about competing with others, like how you would when starting a new business, and more about working with your fellow franchisees.
The simpler way
Buying a franchise means getting what’s called a turnkey business – just turn the metaphorical key and go. It’s a quick and easy way to become a business owner. Despite this, you still get the challenge and satisfaction that comes from running the business and continuing its success.
If you want the autonomy, flexibility and pride of being your own boss, buying a franchise is a great way to go. While it will come with its fair share of challenges, there will also be certain risks of starting a whole new business you can avoid. Buying a franchise means less time trying to build up a brand and its business model and more time operating it.
If you’re ready to take on becoming a franchise owner, see how you can own a Brainiact today.