7 Reasons Why Franchises Matter in the Digital-Based Business World
Starting a business can be very difficult. Attracting an audience to one’s business can be even more difficult.
What if there was a way that you could start your business online with the help of a more established one, and access their audience immediately? Well, there is, and it’s called “franchising.”
A franchise is a license that grants a franchisee access to a franchisor’s business knowledge, audience, trademarks, and expertise, allowing the franchisee to sell products in the franchisor’s name.
Franchises have never been more useful than they are today, in the digital age. Here’s why:
Table of Contents
1. Cost
Starting a business isn’t cheap. You need to find employees, products, and real estate and establish an online presence. When you are starting your own franchise, you must fund it yourself. According to one expert guide detailing this year’s top-performing franchisees, franchises can be bought for as little as $10,000.
This is significantly cheaper than most businesses are to start. Beyond the initial cost, everything that comes in you keeps, apart from royalties. The royalties and kickbacks that you need to make to the franchisor will be outlined at the start of your contract with them.
2. Growth
The growth that you will experience after starting a franchise will be exponential, provided of course that the franchisor’s audience is large. The best part about starting a franchise is that you do not have to cover the cost of investing in staff or premises – all of this is done by the franchisor.
Additionally, if your franchise grows large enough you will be able to sell it in the future. A business that grows fast is profitable. Your supplies and equipment will be provided for by the franchisor, and while you will have to pay for them, they will usually be provided at a discounted rate.
3. Management
As a franchisee, you will be in total control of your business. Lots of people wrongly think that because they are starting a franchise, the franchisor will be in total control of the business. This couldn’t be any further from the truth.
You as the franchisee will have a say in overall business decisions – not the franchisor. It’s always important to bear this in mind. Sometimes people think that franchisors will micromanage their businesses, which puts them off from starting one. This isn’t at all true, so don’t worry.
4. Development
The larger your business’s franchisor, the easier it will be for your business to grow and develop. You should bear this in mind when you are starting your business. On the other hand, the more franchisees your franchisor has, the more their business will grow.
Some people intentionally start businesses with growing franchises because they want to eventually become “flagship” stores. This is a possibility and is something worth bearing in mind. If you are short of money, then you might want to consider starting a franchise with a business that’s still in the process of expanding and becoming a household name. This could turn out to be extremely profitable if you pick wisely.
5. Motivation
Another reason that franchisees are so important in the digital era is that they can motivate people unlike anything else. The reason for this is that businesses that are very well-known command a lot of respect. People know, for example, that McDonald’s is a very lucrative business, so by starting their own McDonald’s franchise, they will be able to make a lot of money.
Starting one’s own business is a bit of a shot in the dark – starting a McDonald’s franchise isn’t. Thanks to social media, people are also able to advertise their franchises more easily, making it a much more profitable venture. There’s nothing that can motivate people quite as easy profits can.
6. Power
There are lots of businesses nowadays, and many more are being started up on an almost daily basis. It can be difficult for people to break into certain industries and start their own businesses. By starting a franchise, they are immediately given a lot of power and respect, meaning that they are more likely to succeed than their competitors that aren’t franchises.
7. Support
Starting a business isn’t easy and bears challenges for every entrepreneur. Franchisors support their franchisees every step of the way, providing a lot of training and ensuring that their franchisees are ready to get started in the competitive and complex world of business. Support is something that everybody can benefit from, especially start-up business owners that haven’t got much experience with running their own business.
If you are thinking of starting a franchise, then bear everything we’ve mentioned here in mind. Starting a franchise is a great way to take control of your future and ensure financial success. Make sure that you pick the franchise you choose to work with carefully.