In the wise words of a sometimes controversial Top Gear presenter…. Some say, buying a franchise is a waste of money, others say, that you might as well go it alone, all we know, is that 1 in 3 business fail in their first 3 years* and of the 33% of businesses that do survive as many as 95% will fail in the first 5 years!*1
These stats make for stark reading especially when a report carried out by the Franchise Development Service revealed that franchised businesses achieved a 91.8% success rate in the last 12 months!*2
One of the main talking points that arises when people consider buying a franchise is trying to establish the benefits between setting up your very own business or setting up your own franchise business. This has often been the topic of many heated debates. Without question there are obviously pros and cons to each side of the argument, there are endless possibilities to consider along with the many personal factors to take into consideration, ultimately the success of either type of business boils down to the individual running it.
Take what you will from the online stats available, there is no question that starting up a franchise for the majority of people will be much more beneficial then trying to build your own business. Franchising offers you a business that has a proven and successful business model, due-diligence and extensive research prior to starting your own business is no guarantee that it will succeed, by which time you will have already invested extensive time and capital.
Franchising is far lesser risk, it gives you the opportunity to concentrate on aspects of running a business you are both successful and experienced in. Depending on the franchise you choose that best suits your skill set, you can expect to be supported by a team of professionals, such as accountants, marketeers, business developers, IT consultants, designers and sales team. It is these people in a franchise that you can go to for support and guidance. Not only being able to draw upon the skills of head office, you will also have a wealth of resources from existing franchisees who you can consult and share best practices with, thus enabling you to focus on building a client base and developing your business. In contrast, the owner of a new business has to run, organise and look after EVERY aspect of it.
Buying a franchise means you do not take as big a risk. Return on investment will be much easier and quicker to achieve. Buying a franchise means you can hit the ground running starting the business straight away as everything is set up ready to go. You are given full training and support with a business model that has marketing channels, materials and established methods, along with operational systems and sales techniques, leaving you to get on with what you are best at, growing your business.
And on that bombshell, the next step after choosing to buy a franchise, is making sure you pick the right one.
Karl Lewins is the Business Development Manager at Spoton.net. For further information, see our page on the Spoton.net Web based franchise.
References: * The Times 100 *1 B2B international *2 The Franchise Magazine