Startup businesses do not always require unique, fresh, and new ideas. Startups can involve franchising an established business. There are many franchise opportunities born though creative entrepreneurship ideas.
The home service industry, in particular, is facing growing franchise momentum. Homeowners, as well as the aging boomer generation, are more focused on franchise businesses able to provide a greater level of convenience and cost. Lucrative franchise opportunities include starting a house painting business, cleaning service, junk removal service, and mosquito control operation.
Quick Startup
Startups may find the first few months and years of operation are the most difficult and uncertain. Taking on a franchise allows business owners to hit the ground running and start with a company that already has traction and a working business model. Franchises can depend on already established supplier connections and competitive pricing.
Guidance and Support
Most businesses have to get through a certain amount of red tape before being allowed to begin their operation. For instance, salons and restaurants need to gain licensure in the area by proving they will keep up with various health regulations and codes. With a franchise startup, business owners are not starting from scratch. They can benefit from learning the experiences of the franchise owner and other franchisees. This allows them to avoid costly and unnecessary errors that can cause frustration, additional delays, and further expenses.
Recognition and Reputation
It can be difficult for a new business to stand out in a highly competitive industry. A particular company may, for instance need a high advertising budget to compete with other restaurants, salons, or hotels in a single small area. Owning a franchise means immediately having an established level of trust that stems from name recognition. Customers are familiar with a name and are aware of the various services a business provides. They may also be more inclined to go for a particular business because they associate it with a certain level of trust and expectation. A brand new franchise can gain recognition through the brand’s reputation and word of mouth promotion. Essentially, a franchise business is initially driven by an established customer base and referrals.
In addition, with franchising, the marketing budget is part of a much larger organization with a wider reach and greater bandwidth and resources. The amount of people this can reach is much more than what an individual business owner can accomplish.
Reduced Risk
A franchise represents a business that has already achieved success in a particular industry. Those who choose to invest in a franchise go through limited trial and error and experience reduced risk that a business model will fail. The business model is already properly tried and tested. The franchisor may also provide training for employees and prepare the tools and equipment necessary for a business to operate and succeed. For the franchisee, this reduces the need to do additional research.
Scalability
A franchise business is more scalable than other startup businesses. Owners can easily expand to multiple new locations or offer other types of commercial services. Each succeeding location and service will be similarly convenient and easy to manage.
Franchise opportunities are becoming more and more attractive. They are ideal places for business owners to start and grow in a particular industry. So, if it’s something that you think suits your investment risk profile, today may be the best time to start.