One day, you woke up with a brilliant idea in your head: you’ll set up a coffee shop right next to Starbucks. However, you feared that the latter’s brand power will you drown you out, so the next evening you decide instead that you’ll open a steak restaurant at a classy side of town. But later on, you realize the area is riddled with steak houses, all branded heavyweights in their own right – and so here, your train of fantasy grounds to a halt.
While this realization might permanently douse the entrepreneurial spirit of some people, it’s not the end for you. Indeed, such fears are perfectly founded, as launching your own business can be daunting, especially in today’s economy. For one, there’s no certainty that your business will become the titan you envisioned. That is why more people are now turning to franchising.
Franchising is particularly prevalent in service-based industries such as fast food joints and hotels. Franchising offers you (the franchisee) the chance to operate a business with an already pre-existing infrastructure. The only drawback here is that, to acquire the knowledge, skills and techniques of the franchisor, you’ll have to pay him a considerable amount.
But don’t let this initial down payment scare you off, as the potential benefits far outweigh the upfront costs. For starters, franchising a brand means that you don’t need to wrangle your brain for ideas such as the name of your business, the trademark, and the site design. These are all basic considerations for a start-up business. However, with franchising, everything about your business has already been neatly laid out.
If you’re not convinced, consider the fact that the reason you’re franchising is because the franchisor’s enterprise is already a proven success. By entering into business services franchise, you’re simply following the trail of a profitable business. In fact, numerous studies show franchising a proven enterprise has a much higher success rate compared to starting a new one.
Additionally, with business services franchise, you eliminate the stressful muddling over the “ifs” and “what-ifs” of a startup business. Back then, your worst nightmare was probably the hefty price tag of the construction cost. But in franchising, all you need to do is be trained while your branch site is being constructed.
Finally, through the effective financial services franchise ventures utilize, franchising can be a lucrative source of income. For your peace of mind, just invest in an established business, and you’ll be surprised at the impressive return on investment – which, by the way, will come without as much brainstorming. For more information about franchising, log on to hubpages.com.
Franchising: The Yellow Brick Road to Success