7 Reasons To Start Your Franchise Business
Every year millions around the world start a business due to a multitude of reasons. For some, it’s the thrill of being your own boss, an escape route from the corporate grind for some, and for some simply because that’s where their passion lies. Despite all these reasons, dark clouds of doubt often hang over the heads of aspiring businessmen. From fear of failure to lack of necessary technology, many find these obstacles hard to overcome. Being a franchise owner is a solution to overcome several of these fears.
There are several different franchise models such as business format franchisee, product franchisee and manufacturing franchisee. In the generally used model (business format), the owner of the original business, known as the franchisor, essentially sells the rights to use his brand to an entrepreneur called a franchisee. The franchisor provides the franchisee with ongoing support in areas such as business operations, marketing and obtaining financing. In return, the franchisee agrees to follow the franchisor’s business model and to pay the franchisor royalties based on a percentage of unit sales as stated in the agreement.
Here are some of the reasons why an aspiring businessman should choose the path of a franchise model to crush their fears and succeed with ease.
1. A proven model
Good franchise companies develop their model with adequate planning taking all possibilities and data available into consideration. Over the years they have perfected the model that guarantees success and offers protection against unexpected losses.
Furthermore, they refine their model, learning from every new positive and negative experiences. For every potential pitfall, franchise companies have developed strategies to minimize the risk. This continuous process of improving efficiency ensures that the franchise model offers you a better chance of succeeding at the business.
2. Brand power
Brand plays a major role in attracting customers. The crowd is more likely to flock towards a Burger King or McDonald’s rather than an unknown burger joint in their locality. This is due to the trust and reputation built by the company over the years. People often connect with brands emotionally due to personal sentiments and develop brand loyalty.
By being a Franchisee, your business automatically gains the trust and reputation the brand possesses. You can use this brand awareness to drive in customers without spending excessively on promotions. The brand loyalty helps to keep the churn at a minimum level. This headstart immediately grants you a cutting edge over the local competitors.
3. Training program
Along with the existing model, franchise companies also provide training so as to onboard the workers successfully onto their model. This training is effective in 2 ways. Firstly, this helps workers grasp the model and leads to smooth operations. Secondly, the overall efficiency of the workers is increased. This, in turn, increases customer satisfaction and leads to fewer complaints.
Most companies provide a short but intensive training that makes a world of difference during the operations. Example: Jugnoo, the auto & taxi aggregator provides two weeks of centralized training to the newly onboarded drivers and staff. This helps them use the Jugnoo app effectively, increasing their efficiency and giving them the opportunity to serve more customers.
4. Be your own boss
Despite, being a franchisee, you will be your own boss. Of course, you may not be able to make all the decisions, but you have power over most of them. All the day-to-day activities and operations will be controlled by you.
You will have to follow the procedures and formula used by the franchisor. But at the end of the day, it’s you who manages the schedule and runs the show. Your decision making extends over a wide range and includes crucial points such as choice of franchise and recruitment of employees.
5. Built-in support system & Ongoing operation support
Franchise companies ensure their franchisees work at optimum efficiency by providing them with superior quality technology and the best support systems. This technology is often not affordable to small scale businesses and some cases even inaccessible to them.
Besides technology, major franchise companies offer customer support to remove that burden from the shoulders of franchisees. Jugnoo, for example, provides its franchisees with both advanced user-friendly apps (for both customers and drivers) and 24*7 customer and technical support.
6. Marketing assistance
The franchise company has already built up a marketing base which you can leverage to gain popularity for your business. Similarly, the company is likely to conduct centralized marketing campaigns which will directly help improve your business.
Furthermore, these companies directly provide marketing assistance to you with proven tools and strategies for attracting and retaining customers. In some cases, the staff even helps you develop marketing plans, budgets and plan your inauguration.
7. Quicker profits with less risk
Building your business from scratch requires immense investment of capital and time. It may take years before the business is mature enough to yield profits. By being a franchisee, you are more likely to start earning profits immediately with the proven model.
While starting a new business, even worse than waiting for the company to break even is the uncertainty over if it will. A large percentage of small business started often fail due to lack of proper management, lack of strategy, unfavorable market conditions and sometimes even due to sheer bad luck.
Franchise company provides you the cushion that minimizes the risk of failure. With the vast experience of the franchise behind you, you’re investing in a proven concept and security of being part of a network, increasing your chances of success many folds.
Franchise model offers the perfect solution to aspiring businessmen who lack the resources to kickstart their own business. It gives you a chance to be your own boss while always having a safety net guarding you against failures. Indeed with support systems to guide you through every domain of business, being a franchisee is the best opportunity to build your business.
To learn more about Jugnoo franchise, you can get in touch with our consultants. We are just a click away: Jugnoo Franchise.