America is a great place. A business in the United States or Canada can be started in no time at all. In the past few decades, starting a business has been made much easier with the number of franchise opportunities available to the public. Finding the top franchise opportunity to start a business in is not an easy task. There are countless numbers of franchisors out there eagerly waiting for you to sign their franchise agreement, but which one should you choose?
You have many options to choose from including the following: Food Franchises, Business Franchises, Automobile Franchises, Daycare Franchises, Fast Food Franchises, Retail Franchises, Hotel Franchises, Travel Franchises, Home-Based Business Franchises, and even know Internet-based Franchises.
The opportunities are endless for eager business owners. The walks of life that prospective franchise owners take are from all different paths. Frustrated corporate workers, previous business owners, college graduates, even teachers choose the Franchise route. Why do they choosing franchising?
Well, the statistics speak for themselves.
-Less than 4% of franchises fail in their first year of operation
-90% of franchises are said to still be in business ten years after opening
Independent start-ups, also known as small business opportunities are a bit different, well actually a lot different.
-38% cease operation in twelve months of opening
-90% are out of business by the tenth year
With the comparison of those two statistics alone, it is plain to see why people choose to go the franchising route versus just a small business opportunity.
The Franchisors provide the franchisee with great support, products, training, and assistance in marketing.
Marketing is a crucial factor for franchises to gain market share within the first couple of years. If nobody knows about your business, it is hard to gain customers. The Royalties are supposed to help in regional and state-wide advertising efforts for the franchisee. The percentage that is used for advertising varies from franchise to franchise, but generally it is around 2-3%.
It is my belief that independent start-ups or small business opportunities fail so quickly due to the lack of marketing and exposure. The owners get discouraged very quickly and close up shop before investing too much time and money. This is unfortunate, because many of these businesses are great ideas and could offer a great value to the customer- many times even better then a franchise opportunity could offer.
Why should you team up with a franchisor? They have the know-how, money, and most importantly the established name that you need for your business. Just think, if you were driving into a shopping complex to grab a bite to eat at a sandwich shop, would you pick Quiznos or Big Johns Subs? Well, an astonishing 79% choose the name they recognize, Quiznos. Why is this? They have seen it on TV, newspapers, billboards, and local fliers. On top of that, Quiznos benefits from viral marketing. Viral marketing means basically word-of-mouth. There is a buzz that goes out about the company that makes them more popular than any other advertising technique.
Basically, without being behind a popular franchise you are putting yourself at a serious disadvantage.
I recommend thoroughly researching any franchise opportunity you are thinking about investing into. Make sure they have good market presence, management support, proper franchise fees, and most importantly a good number of currently franchised units.
If all those factors are in place and the finances in your life are in place, then it is time to take the leap to franchising. It is a great path my friend, work hard and you will once and for all be self-employed for the rest of your life.