Opening a business takes a lot of hard work. Stepping out into ownership
is a big responsibility that comes with a great deal of risk. But what
if you didn’t have to do it alone? What if you could have a safety
net? Investing in a franchise gives you the benefit of belonging to a
larger organization, with all of the support, training and resources that
come with it, while investing in yourself through ownership. This is not
the case when you build a business from scratch.
Proven Formula for a Successful Business Model
The security found in a proven track record of a franchise business model
is ideal for even the more risk averse individual. The business model
has already shown itself to be not only sustainable but profitable. Researching
the company’s Franchise Disclosure Document (FDD) gives you the
opportunity to scrutinize the model before investing. The FDD allows you
to have a better understanding of what you are buying into, something
that isn’t an option when building a business from the ground up.
Easier Access to Financing
Because the business model is already proven to be successful and financial
projections are already documented, it can be easier to secure financing.
The franchise already has built credibility with the bank, and some franchises
even have in-house lending.
Hit the Ground Running with Less Learning Curve
Once you have decided upon a franchise model that best suits you, you are
already ahead of the learning curve of starting a new business. Brand
recognition, support and best practice systems are already set into place
to give you a head start. New businesses do not have the benefit of an
established infrastructure, but a franchise model can help you hit the
ground running.
Real Estate and Build Out Assistance
With a franchise there is the benefit of real estate assistance in choosing
the optimal site for your business. Demographic research data and extensive
databases can provide you with the best information to make your site
selection. There is also build out assistance, and design and layout guidelines
have already been established, making it essentially a turnkey endeavor.
Training and Ongoing Support Systems
Training programs speed up the startup period and eliminate most of the
trial and error characteristic of many new businesses. Reference materials
and resources already exist and are at your disposal. Ongoing operational
support ensures you are not alone and have the help of an experienced
team. Franchisors have a stake in your success, which means they are highly
motivated to support your success. There is a team dedicated to helping
protect brand integrity.
Brand Recognition and Marketing Assistance
A franchised brand is usually well established and recognized. Marketing
assistance with proven tools and strategies for attracting and retaining
customers is already in place, which means there is already a customer
base before you open for business.
Power of Bulk Purchasing
Bulk purchasing allows a franchise system to negotiate low prices for everything
from initial furniture to equipment to supplies to inventory to uniforms.
This means lower overhead and better profit margins for you.
Independence but Part of a Team
Being a franchise owner allows you to work for yourself but not by yourself.
Peer networking is a huge benefit. With a focus on selling exclusive and
protected territories, competition can be mitigated. This creates an environment
where individual successes benefit the system as a whole, and sharing
of ideas is encouraged.
Opportunities for Expansion
Depending on the scalability of the franchise’s business model, there
are greater opportunities for owning multiple units. Many models are built
to scale and have a system designed to support and encourage expansion.
Ownership
Investing in a franchise gives you the opportunity to pursue entrepreneurship
and build something for yourself. Your skill set does not limit you, as
you have the backing of an established brand and support systems. It is
a smart way to diversify your assets while investing in something that
can be passed on.
Franchising provides a proven business model with all the benefits of belonging
to a network that is working for your success. Investing in franchise
ownership allows you to build a business with the security and safety
net of an established company. You are able to bypass many of the challenges
independent businesses face and move on to maximizing your revenue potential
more quickly and more effectively.
One of the most important things to do when investigating a franchise is to
ensure the type of ownership the brand promotes aligns with your personal
and financial goals.
To learn more about franchising and what owning a Sport Clips franchise
looks like,
click here.
