When it comes to starting a new business, starting on your own from the ground up is not always a great idea. Going it alone means that a new business owner has to rely on his own financial means, his business acumen, marketing skills, and his ability to adjust quickly to market fluctuations. Of course, a new business owner also should, at least, have the better mousetrap or an equivalent service to offer in order to create a successful new business.
And do not assume that banks and financial institutions will fall all over themselves to offer you credit. On the contrary, new business owners find locked and battened down doors more often than not. Even when a door is slightly ajar, the banker inside will take your small finger, then the entire hand, your first-born and his grandmother before considering a loan for your startup business.
Well, what about government loans, aka SBA loans? See above, except that they will also take your pet – dead or alive.
Doesn’t sound good to you? Well, it is a reality. Unless a prospective business owner is willing to consider an alternative: A franchise.
There are numerous franchise benefits to consider:
- Proven, operating business model, and procedures
- Desirable products or services
- Business training
- Marketing and advertising support
- Assistance in getting financing beyond the initial investment
- Branded products or services
- Avoid costly bad business decisions
- Help in selecting a good location
- Retail store layout and equipment.
This list of benefits of owning a franchise is incomplete. There are additional benefits depending on the type and industry of the franchise.
True, franchises can be expensive. Their price can reach easily hundreds of thousands of dollars. However, starting an inexpensive startup will cost easily $ 50,000 or so.