More people than ever are dreaming of opening their own businesses. Whether it’s the flexibility of work, chasing a passion or simply being able to work for themselves, the allure of entrepreneurship is hard to ignore once it takes hold.
However, too many entrepreneurs are launching businesses that fail before they’ve begun. According to Turner Little, between 2007 and 2016, over 39,000 businesses failed within their first year. Of course, there are many reasons behind this, and there are many notable examples of companies that have succeeded. One of the best ways to ensure a return on your investment is to enter a franchising agreement with an established brand. Joining a franchise offers a range of benefits, making it full of appeal for a variety of entrepreneurs.
One of the biggest advantages of joining an established franchise is the wealth of industry experience from which you will be able to benefit. These institutions will often have had noticeable success in your sector of choice over many years. Throughout the franchise’s creation, they would have experienced all manner of opportunities and threats and can share that knowledge with you. This experience creates the perfect environment to generate returns on investment.
No matter the amount of research and planning that may take place before the opening of a business, there are plentiful hiccups that could derail a plan in its youngest stages. These kinds of events can have disastrous effects on small start-ups that do not have the financial support or experience to get back on track. Similar to the point above, a successful franchise will be able to provide additional support during the potentially-rocky opening period.
This franchise support can take different forms depending on the company in question. However, many will be able to offer some financial backing to go with their wealth of business experience. This combination ensures that your business will not only be prepared for potential market conditions but will also have the nimble-thinking required to overcome early adversity.
Something that is often underestimated by new startups is the importance of securing good contracts. In many cases, this can be where new businesses fail, as they may have to pay more than established competitors for the same essentials. A strong franchise, however, can help new companies secure strong agreements that provide an invaluable boost to early trading.
A large organisation with a proven track record will be able to negotiate notably better contracts than a new startup with minimal experience or capital. Whether it’s for ingredients or materials, utilities or vehicles, the savings on expenses incurred as a result provide yet more room for profit and long-term performance.
An established consumer base
Similar to the point above, new businesses have to spend a lot of early marketing funds on establishing a presence in the market. This promotion can be challenging, especially in saturated markets, and creates more risk for the entrepreneur. Entering a franchise agreement will allow you to trade using an established brand name from day one, providing a massive boost to early performance.
Consumer loyalty is something that many businesses work extremely hard to create and maintain. Successful franchises already have this in abundance, and entrepreneurs will notice this in their early trading as part of the brand. This allows one of the first major hurdles to be overcome with ease, allowing you to focus on growing your business much faster.
Something that is often forgotten about franchise agreements is the level of freedom given to you as a business owner. A successful franchise such as Esquires Coffee will find the perfect balance between support and individuality by allowing you to operate your franchise in a way that suits you and the business model.
A successful franchise will always allow room for proven entrepreneurs to thrive. Certain elements will have to be completed in a manner dictated by the franchise. However, for the most part, you will be able to run your business as you see fit. From managing employees and inventory to promoting your store or branch, franchising allows you the freedom of expression as part of a model with proven success.
There are many advantages to starting a business as part of a franchise, no matter what the industry. However, these arguments become even more prevalent when applied to highly saturated markets, such as the coffee shop industry. More people now than ever are looking towards coffee shops as successful business ventures, but competition is fierce. By joining an established coffee franchise, you will benefit from years of experience and a brand with a proven track record of success, while also having the freedom to open a coffee shop in your image.