- Risk minimization.
In a sense, franchising is a business model whose primary purpose is risk minimization. Every study ever done on the success rate of new (non-franchise) startups concludes the same thing. Starting up a new non-franchised business has a much higher failure rate than starting a franchised business. The primary reason this for a higher failure rate is due to the learning curve new owners have to go through. Trial and error can cost you money, your credit or your home. Franchises have already experimented with the learning curve.
2. Financials are clear before you begin.
It is prudent to buy a franchise because a franchise investment can be thoroughly researched before any significant expenditures are made. With a non-franchise start-up, you are always operating in the dark. No matter how much research you do it is very difficult to get a handle on the many aspects of the new business including the different technologies available, training methods, operational systems, sales processes and marketing strategies.
3. You get firsthand information from current franchise owners.
The best information to indicate how well you might do is to talk to current franchise owners. Part of the process of exploring franchise ownership is learning all you can about the business system you are considering, and speaking with current owners is part of that process. Ask them as many questions as you can. You can in a very real sense “try the business on” to make sure it is a good fit for you.
If you want to explore business ownership, take some time to discover some of the stronger franchise opportunities. I can give you an idea of industries that might be right for you right now. Send me an email at mcamras@mvisionconsulting.com or text me at 858-922-0959 with any questions you may have. I’m happy to help.