For many Americans, the American dream is owning and running their own business. It’s right up there with the dream of owning your own home. However, if you’re thinking about starting your own business, take a second to consider the options—namely, should you start your own business, or should you invest in a franchise? The following are five advantages to buying a franchise vs starting a business:
1. It’s Easier to Obtain Financing
Getting a loan for your own business can be challenging. Many lenders will not approve loans that they deem to be risky, and small businesses are typically deemed risky because the majority of them fail. In contrast, a franchise is seen as a part of a successful system that is less likely to fail because of its infrastructure, which means lenders are not only more willing to give loans for a franchise business, but also willing to provide better terms.
Additionally, there are more ways to obtain financing with a franchise because many franchisors offer third-party financing options.
2. It’s Less Expensive to Start
The amount of money it takes to get a new business off the ground can be extraordinarily high. This is partly due to the fact that new business owners have to spend a lot of money on marketing their business to attract customers. It can be difficult to accurately estimate how expensive marketing will be, which can leave new business owners out of money and out of luck only a few months into their new business venture. Most franchises will provide a basic outline of what you can expect the costs to be, so you know exactly what you are getting into when it comes to buying a franchise vs starting a business.
3. You Don’t Need an Extensive Business Background or Education
If you don’t have education or experience in business, then starting your own business can be a challenge. You won’t know how to create an effective business plan, which will make you more likely to fail. This experience and expertise isn’t needed with a franchise because you’ll receive extensive training. Many franchises, such as our Fully Promoted franchise, provide training courses as well as on-location training to ensure that you are ready to run your franchise effectively.
4. There’s No Trial and Error Involved in Buying a Franchise vs Starting a Business
When starting a business from the ground up, there’s a good chance that you’ll go through a lot of trial and error, whether it’s figuring out the best way to set up your store or how to most effectively market your products. Unfortunately, some of the errors during the course of this process could sink a small business. With a franchise, all of this has been figured out. You can just follow guidelines and avoid unnecessary trial and error.
5. You’ll Have the Benefit of an Established Brand
It will be much easier—and less expensive—to attract customers with a brand that’s established. You’ll also benefit from any national advertising campaigns that your franchisor is running. New businesses have to build their brand from the ground up.
As you can see, there are many advantages to buying a franchise vs starting a business. If you’ve decided that investing in a franchise is the best way for you to achieve your dream, then be sure to contact us at Fully Promoted today for information about our franchising opportunities.