Here’s Why start-up and Franchise Together Make a Win-Win Combination
Every franchise is a start-up and comes with all the risks and rewards associated with any business
But every franchise is a start-up and comes with all the risks and rewards associated with any business.
The upside is that you’re given everything necessary to start and operate a business in one complete package; the product, trade names, operating procedures, quality assurance standards, management support, and training and facility design.
There is a downside as well- your due-diligence while choosing a franchise must be completely objective. A majority of what makes your franchise successful are ‘systems’ and ‘routines’. More important than everyday excitement is everyday discipline. The best franchises are often in boring or ubiquitous industries that smartly bring a differentiate that carves out their niche.
A franchise system therefore is a collective and creative entrepreneurial model; you can operate a single unit franchise or grow to a multi-unit franchise. Here are five reasons franchises are gaining popularity among the startup community.
1. Quick Startup
For many business startups, bootstrapping their business during the first months or years is a daunting prospect filled with uncertainty. Investing in a franchise comes with benefits that enable you to hit the ground running. Supplier connections with competitive pricing are generally already established for retail and hospitality franchises. Many service-style franchises don’t even require real estate for their startup.
The collaboration with a franchise organisation offers an ability to grow under a common brand and share the benefits of being a part of a larger group of business owners. Through collaboration, franchises avail of the following benefits:
- A business of your own guided by the experience of a successful business owner.
- Ease in supplying products to a well-established set of customers.
- Training from successful business operators
- Lower risk of loss in investments.
- The benefit of recognised trademarks, patents/designs and proprietary information.
-Uniformity in operations, design of interiors, quality and overall brand awareness.
- Operational support provided by the franchisor in areas of finance, accounts, training and operational procedures.
3. Regulatory support
Every business has a certain amount of type of red tape to deal with.When your startup is a franchise, you have the benefit of the experience of the franchise owners and other franchisees in your state to help you navigate these hurdles. Avoiding costly errors in this process can save you frustration, delays and expense.
4. Growth potential & Scalability
Franchises are easily scalable in multiple ways. You can scale your business geographically by starting in one area and gradually expanding to multiple locations. Or, if you have a home service franchise, you could expand its service area or expand the types of services offered. Additionally, given that in the large Indian cities, retail space continues to be expensive. Taking on a huge rental cost without a proven business model can be a challenge.
5. Immediate Name Recognition
The hospitality and personal services industries are highly competitive. Choosing a franchise makes it easier for your brand to stand out above your local competition. There is an immediate trust level that comes with name recognition. Your marketing becomes part of a larger organization with a wider bandwidth than you could accomplish on your own. Word of mouth and customer referrals are two big drivers of new business. Even when your business is brand new to an area, the reputation of the franchise brand can create the initial word of mouth promotion that is so vital to success.
It’s important to follow the franchise system you purchased. Some new franchisees pick and choose the systems they like and don’t use the ones they are uncomfortable with. The system is the solution to your success, and there is a reason why the concept was turned into a successful franchise. Make sure to use the entire system, not just bits and pieces of it. You will be thankful you did.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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