If that you’re considering starting a company, each of your safest bets are to purchase a franchise. Franchises are a popular way to launch a new company since they’re highly likely to succeed. In line with the U.S. Department of Commerce, 95 percent of franchises continue to be in business after five years. The likelihood of success with a self-launched business will still be operating after 5 years is 47 percent. Buying a franchise more than doubles your chance to survive being a business owner. And when you pick the right franchise, your chances can increase beyond 95 percent.
One of the reasons businesses are safe is the fact that a lot of people who subscribe to a franchise are in a stronger financial position. Because the lack of financial resources is the primary reason a lot of companies fail, franchise participants set themselves apart from the crowd by their access to sufficient capital, whether from personal savings, personal borrowing, or family loans.
Franchise companies have a selection process for franchisees, just as franchisees have a shopping process for franchise companies. An agreement between franchisee and franchiser is a marriage where both partners are evaluating each other’s potential for success. By the time a franchisee signs up with a franchise company, the business has a pretty good idea of the franchisee’s likelihood for success. The bigger the franchise, the more scrutiny the franchisee receives.
You will receive a good deal of support from your franchise company in the process of getting your operation up and bringing it into profitability. The franchise company includes a vested interest in your success, since the company needs your success in order to grow. It can’t survive too many failures on the way if it expects to make its franchise program successful.
Franchises are based on the fact that an already-successful business operation could be duplicated. The classic franchise pitch is: “We have a business system, concept and product line that is tried and tested. Should you run the business according to our proven system, you’ll be successful.” The franchise delivers a product line (or line of services) that has already distinguished itself from its competition. The franchise has already determined the appropriate marketing and management structure to deliver the product into your community.
The franchiser has also determined what’s needed for achievement and has ascertained that you could deliver the investment necessary for success. When your franchise opens, most of the uncertainties of business start-ups happen to be eliminated. You have enough capital. You have a successful strategic business plan. Your product has demonstrated acceptance on the market and you have a proven marketing strategy. If you stumble on the way, you’ve got management support to help you identify the problem and make appropriate corrections.
The final reason franchise start-ups are so overwhelmingly successful is that the franchise company helps the new business owner with business management tools and training. This support delivers exactly certain requirements for the individual business. Most new business owners, whether they start from scratch or buy an existing company, have to discover ways to run a business on the job. No business school can prepare a new owner for the management demands of running a company. A franchise, though, will know what challenges the new owner will face as well as the company has devised solutions to those problems.
In many ways, a franchised unit in a franchise company stands better chance for survival than a company-owned unit. When a franchise company opens a branch, it is almost always run by a manager. No manager, no matter how motivated, could have the same drive to achieve success that a franchise owner has. The franchise owner is motivated by a desire for independence combined with a desire to protect her invested interest. Therefore if a company’s headquarters is 2000 miles away, the franchise owner could be the best potential manager for just a branch. If your franchise branch falters, company management does not have to ponder if the manger is honest and motivated. For more info about online franchise visit our site today!