Many businesses will fail in the first five years of operation. The ability to build a successful business depends on variables that are not easy to predict.
The idea of starting a new business is appealing, but it requires advance planning, plentiful resources and a strong marketing strategy in order to compete in a crowded field. The franchise owner has an advantage over the solo small business owner who is starting from scratch. He or she will excel due to the corporate support and successful business operations of an established franchise.
The Basic Steps for Starting Your Business
There are certain basics you need to know to start a successful business. To apply for financing you’ll need to develop a business plan. And, of course you need the ideal real estate location and the ability to handle the legal requirements for becoming a business owner.
As a franchise owner, the franchisor works with new owners in each step of the process. They offer assistance in developing a business plan and can often provide assistance with financing. The franchisor will also help you in securing the best location for your new business.
Support and Help For Beginners
One of the main reasons businesses fail is that new owners aren’t prepared to handle the work that comes with running a successful business. Planning program content, training staff, managing inventory, accounting, marketing and the daily operations of a business are crucial for a successful venture. In the franchise, new owners are given training on every aspect of the business, from hiring and training new staff to planning the first day. This hands-on assistance and training provides the inexperienced business owner all the tools needed to run a successful franchise.
Brand Name Recognition and Marketing
Attracting customers to your new business takes a lot of work. The solo business owner is building his brand and reputation from scratch, whereas the franchise comes with an established name and product. The customer already knows what this franchise stands for thanks to years of successful marketing.
A franchise has already been branded and has marketing materials for logos, promotional campaigns and advertising. The new franchisee has immediate access to these materials at a significantly lower cost than what the independent business owner will pay.
Support and Resources
The independent small business owner is on his own. He has no pre-set plan, and no support or business resources to rely on. And, in the event of problems, he must find solutions through trial and error.
The franchise owner has access to a corporate consultant available at any time. The consultant is knowledgeable about all aspects of the business and can provide tools and resources as needed. This model of mentorship, support and professional training is an invaluable asset for business owners.
A Strong, Successful Business Model
While many new businesses fail, many do succeed. The successful businesses are those where owners devote significant time and resources to creating a successful business model. It’s not necessary to have the skills to develop a strong business model in order to start a new business. With a franchise, you already have a successful, proven model. Owning a franchise brings immediate brand recognition with a record of customer satisfaction and financial success. As a new franchise owner you are entering into a partnership with experts in the field. Your business skills will be supplemented by the expertise in the corporate office. This arrangement has been proven as a successful business model, resulting in strong and successful businesses.