Buying a franchise can offer a better chance of success. It comes down to much more than the right franchise business opportunities. You have to focus on successful methods much of which the parent company maps out for you. It does not guarantee success though. Statistics vary for success rates with figures floating out there of 55 up to 95 percent. According to American Express, the true success rate comes closer to the 55 percent figure.
Part of the success problem is the myths surrounding franchises. Many stem from assumptions people have about franchise opportunities. So, what myths contribute to those 45 percent of failed franchises? Which myths stop bright business people from entering the franchise industry?
1. Respected brands sell themselves.
While you will benefit from a recognizable name, you still have to conduct competition analysis and market your company. You need a marketing strategy. Your parent firm probably provides stock ads and a general marketing plan, you'll need a marketing consultant or publicist to help you strategize and localize.
2. You don't need a localized website.
You need a local website for your franchise location to capitalize on local SEO and local search results. The corporate parent site doesn't come up when someone in Bugscuffle, TX does a search for boots, but local stores carrying boots will.
3. The parent firm teaches you everything.
The parent firm does provide building specifications, measurements, basic marketing materials, etc. It doesn't set your internal procedures though nor provide competition analysis guidance. A franchise business consultant can help with these and other items though.
4. Only what I am good at already brings success.
In reality, you need to make a list of your transferable skills. Your skills determine your potential success, not whether you ran a dog kennel or travel agency in the past.
5. The right opportunity will jump out at me.
Choosing a franchise requires research. Leave your emotions out of business. Choose your franchise based on the transferable skills you have and what your area needs and wants.
6. Corporate dictates everything.
You'll still get to express your individuality in your management style, local and regional marketing, hiring and firing, etc. Corporate provides you the formulas, protocols, signage, uniforms, etc. Franchises hold internal contests though that reward an individual owner's creative management.
7. Franchises cost a lot.
Most franchises cost less than $100,000 to start. Some cost only $12,000. You'll also pay a one-time franchise fee and royalties on a weekly or monthly basis.
8. You have to quit your job.
Some franchises design their program so you don't need to quit working to start it. You can take on a partner who handles the day-to-day operations while you remain a passive partner.
Ignore the myths and focus on the real instead. Choose consistency and commit to using the systems developed by the franchise parent company. With so many franchise business opportunities to choose from, picking the right one and buying a franchise can seem overwhelming. Something that is really helpful is a franchise buying platform on National Franchise Resales.
A franchise allows you to open a business with the toughest parts of startup already done. The US franchise industry provides a lucrative opportunity - more than 900,000 franchised businesses producing an economic output of $2.31 trillion. You only need to choose one and get started.