Offering both the flexibility and independence of being a small business owner, plus the support and infrastructure of a larger corporation, a franchise can be the ideal opportunity for anyone interested in becoming an entrepreneur. However, while many articles will breeze through some of the positives and negatives of owning a franchise, few take the time to actually detail out thoughts and research behind the points they raise.
The goal of this is to help you see the positives of opening a small business through a franchisor. We’ll share some stories, statistics, and antidotes detailing why we think franchising is the right path for many inspiring entrepreneurs.
Here we go…the third of seven reasons why franchising may be the right path for you to open your business.
Most Franchisors Offer the Expertise of a Professional Business Team
According to Visualcapitalist.com, 23% of businesses that fail, do so because they don’t have the right team in place. Imagine as you contemplate opening a business, a genie appears and says they can increase your odds of success over the first 5 years of your business by 20%. What would that be worth to you? Just think of all the time, effort, and money you have put into your business and this genie has now offered you the chance to increase your odds of survival by 20%!
In a separate report by Salesforce.com, 66% of small business owners are personally responsible for three or more of the following areas of their business: operations, finance, sales, marketing, human resources, customer service, product development, or IT. Think of your current job and how many of those functional areas your current job duties covers. Odds are, probably not three of them. That means many business owners are taking full ownership for functional areas they have little to no experience in. While that might be OK for one area, taking on 3 or more certainly feels like a recipe for failure.
One advantage many franchisors bring to new business owners is an experienced team that is well versed in a functional area that the franchisee may not be well versed in. Not every area is equal in a business. In my business, marketing is much more important than product development. As such, we hired a marketing team.
Speaking of marketing, many business owners don’t particularly like doing marketing or have a lot of experience with it. The InfusionSoft 2018 “Small Business Marketing Report”, found that the owners who do their marketing themselves are the least satisfied with their results. The most satisfied? The owners who outsource their marketing. Yet, 70.8% of small businesses do their own marketing.
Most franchisors have full teams dedicated to marketing. Many have other individuals dedicated to operations, technology, and other functional areas. These are professionals who have years of career experience in their functional area.
You should think of your franchisor as part of your professional business team. They won’t cover all the functional areas that you need covered (you will probably need a bookkeeper for instance), but they should cover the more important areas such as marketing. This allows you to concentrate on the areas you are most confident in and can do best.
What it Comes Down To
The decision is a very personal one. No matter which you route you decide, the business will ultimately be yours. Hopefully, this has given you a little more insight into the decision then you had before.
Below are links to each article in the entire series of 7 Reasons to Franchise.
- #1 The Franchisor is your Business “Partner”
- #2 Experience of a Franchisor Translates into Dollars
- #3 Most Franchisors Offer the Expertise of a Professional Business Team
- #4 Franchisors Aren’t Selling a Job, Their Selling You a Business
- #5 Franchising Offers Flexibility
- #6 Franchising Can Help Financing Your Business
- #7 Franchising and the Risk Equation – What is the right amount of risk?
If you are interested in discussing franchising or oppurtunities with Monkey Bizness, please reach out to us.