‘Franchising can be a lucrative — and lower-risk — option for entrepreneurs planning their next move.’
As you progress in your entrepreneurial journey, you’ll begin to think of new ways to branch out and stretch your limits. Diversifying your investment portfolio helps you maximize returns and minimize risks. Entrepreneurship is one way that bold businessmen and women take the plunge into diversification and career advancement. But there’s another option to consider: franchising.
Franchising gives you the benefits of entrepreneurship without many of the associated risks. While still a significant undertaking, franchising is a viable option for many business professionals looking to take a leap.
Here are five scenarios you might find yourself in when considering franchising as an option:
1. Ready for ownership, but seeking guidance
Owning a business is a serious undertaking, with a lot to learn and not a lot of room for trial and error. You might be ready to give ownership a shot, but you’ll also be seeking some guidance when you take the plunge. With franchising, you insert yourself into a scenario where you’ll have all the help you need.
As a franchisee, you’ll receive a lot of assistance from the franchisor, as well as from other franchisees you can connect with. You’ll have access to marketing resources and a proven system that entrepreneurs generally don’t have when they make their starts. This is part of why franchises tend to succeed at a higher rate than new businesses started from scratch.
2. Have the capital, but not the idea
Being a business owner, in any sense, requires a lot of grit and tenacity, but formulating a business out of thin air is quite the undertaking. There are many who want to try their hand at business ownership without having to come up with a brand and product along with it. If you’re ready to tackle the operations side of things, look toward franchising. This requires some hefty upfront costs, but it bypasses the drawing-board stage of entrepreneurship.
With franchising, you’re becoming part of an existing brand with a popular product in place. In essence, you’re simply taking charge of one of the brand’s distribution centers. For example, if you become a franchisee for a national pizza chain, you lean on its existing brand and pizza recipe, but take charge of your branch’s operations. You have the power of ownership without needing to formulate anything else.
3. Interested in ownership, but want the turnkey option
There are turnkey franchises that make it easier for people with skills to run a business. Basically, you bring the business experience, and the franchisor provides the building and equipment for you. Your initial investment provides everything you need.
An example of a turnkey franchise is 100% Chiropractic. With 38 U.S. franchises and another 18 in the works, the brand makes it easier for entrepreneurs to start a chiropractic business. For people who are interested in entering the fast-growing wellness field, franchises like this offer a way to overcome the barriers of starting a business.