Fear of failing is probably the biggest reason why more people do not go into business for themselves.
Depending on whose statistics you choose to believe, 80% to 95% of all new business startups fail in the first 2 years.
These statistics would discourage any would be business owner.
However, when you compare franchises to traditional business startups, you will discover that franchises have a much better track record.
This article is the first installment in a 3 part series that covers 25 reasons why franchises are better than the traditional small business if you want to go into business for yourself.
Part 1: Reasons 1-8 1.
A franchise gives you the opportunity to haveincreased profits, because of the buying power and identity of achain.
2.
In many cases, no experience is necessary for mostfranchises.
The reason why the vast majority of franchisors prefer you have noexperience is because you won't be bringing any bad habits or preconceivednotions with you.
The vast majority of franchisors assume you have noexperience or knowledge about their business.
Therefore, they are prepared toprovide you with a training program which will give you the kind of knowledgeand expertise you need.
This is a tremendous advantage, since 80% to 95% of allnew businesses fail within the first 2 years.
3.
As a franchise owner, you are investing in a businessventure in which someone else has worked out all the problems.
All the testinghas been done.
The market, the product and the advertising program are alreadyestablished.
Even without previous experience, you should be able to handlemost franchises with the knowledge, expertise and training the franchiserprovides.
4.
Another important point to consider is this:As afranchisee, you will be investing in an established total concept.
You do nothave to worry about filing for trademarks or patents.
All this has been done.
Design and marketing concepts have been tested and you can hit the groundrunning with a proven operational system.
5.
Your business is recognizable to the general public.
You do not have to worry about what equipment to buy, how much to buy, or howmuch space you will need to earn maximum profits.
You do not have to decide oninventory requirements or what item sells best in a given area.
6.
In addition to all the above, you have a much lowerrisk factor.
Buying or investing in a franchise eliminates the vast majority ofthe trial and error business failures owners experience when they are developinga new concept.
Your business will get off to a much faster and better startthan traditional small business models.
7.
You will have access to standardized policies,guidelines, procedures, formats, products and services that are used throughoutthe entire franchise system.
Financial and accounting methods and techniquesare provided, inventory control forms, hourly cash register readings, profit andloss statements; as well as all the documents you will need to establish andmaintain a successful business operation.
8.
You will have the additional advantage of companyexperts reviewing, both your financial and accounting records on a monthlybasis.
This helps you discover and solve problems before they impact yourbusiness.
The traditional small business model does not have these built-insafeguards.
Company experts can also help you monitor and manage your businesseven if you are thousands of miles away.