- Owning a small business franchise is less risky than starting up your own.
- The pros of owning a small business franchise include training and assistance with marketing.
- Contact Preservan for owning a small business franchise
You’ve been thinking about wanting to run your own business, but you’re unsure whether to buy a franchise or start a business from the ground up. Pros of owning a small business franchise include you having the ability to buy the rights to use an established brand and its supporting resources. In contrast, a startup is a new business in its early stages of development, often taking several years to become profitable. However, with any investment comes risks and downsides, and there are cons of owning a small business franchise. Reviewing the pros and cons of owning a small business franchise can help you determine if this is the right investment for you.
Pros of Owning a Small Business Franchise
In the competitive landscape of owning a business, those who start one up themselves rarely succeed long-term. 65% of new startups fail during the first ten years of being in business. One of the pros of owning a small business franchise is that you’re owning something that has already been established and successful. You’ll receive the training and assistance you need to be a successful franchise owner.
1. Skipping The Startup Phase
The startup phase is often the most challenging part of owning a business. This phase involves writing a business plan, conducting market research, developing a viable product, and scaling. On top of that, the amount of money you’d be spending more than likely will exceed that of a franchise owner. Owning a small business franchise allows you to bypass much of this process. Your role will be to simply implement their system within your market.
2. Training
Major pros of owning a small business franchise is the support the franchise owner receives. Franchise owners often receive support in onboarding new hires, with on-site training covering opening procedures, daily operations, point-of-sale software, and more. Franchisors are putting their business in your hands, so they’ll do what they can to help you succeed.
3. Assistance With Marketing
As the owner of a small business franchise, you may need to dedicate time and resources to local marketing and advertising. One of the pros of owning a small business franchise is that the franchisors support your business through marketing that will help you get off your feet and running. Additionally, you’ll receive guidance and input to develop and execute your own campaigns. No business can succeed without some form of effective marketing.
4. Access To Resources
One of the more obvious pros of owning a small business franchise is the access to the resources your business will need. Franchises often purchase inventory and equipment in bulk for their franchisees. This will allow you to acquire these essential resources at a lower cost than you would as a startup business owner.
Cons of Owning a Small Business Franchise
At the same time, it’s important to remember that any large investment comes with its downsides. While cheaper than starting your own business, the investment of buying into a franchise will involve startup costs which can be high at the beginning. Along with that, the experience of owning a small business franchise can greatly depend on the rules and style of management.
1. Initial Costs
Buying into a franchise is still a risky endeavor. The franchise fee alone might be beyond your budget, and even if it’s within reach, it could consume a substantial portion of your liquidity. It’s important to be realistic if you can afford to own a franchise. Even if you think you’re able to, you need to have knowledge of how to control finances.
2. Abiding by Specific Rules
While many business owners enjoy being their own boss, franchise owners don’t have complete independence. You’ll need to adhere to the franchise’s rules, regulations, system, and directives. However, this depends mostly on the brand you’re owning a franchise for. Many brands have a good system in place to help you succeed in the long-term.
3. Management
Regardless of how well-managed, efficient, or popular your franchise location is, its success is still linked to the broader national franchise. Any challenges the brand faces can directly impact the success of your business. Once again, this depends on who you’re working under, and these issues don’t come up as often under good management.
4. Contractual Agreements
When you purchase a franchise, you’ll typically sign a contract that outlines the rules and restrictions you must follow as a franchisee. Failing to comply with these requirements could result in losing your business entirely. Additionally, if you decide to exit the business, the process of closing can be far more complicated than it would be without a contractual obligation to a national franchise. If the rules and restrictions are fair and sensible, the contract shouldn’t get in the way.
Should I Own a Small Business Franchise?
Owning a small business franchise can be a great opportunity to become a business owner. Just like with any business investment, there’s risks involved, but the pros outweigh the cons. If you are detail-oriented, able to follow instructions, and comfortable with working within an established system, franchising offers a fast and successful path to business ownership.
Wood Rot Repair Franchising
The demand for wood rot repair services has never been greater! Wood is a common feature on the exteriors of many residential properties and symbolizes prestige in many upscale neighborhoods. Luxury real estate often stands out with its refined wood elements, such as windows, doors, and more. As a result, the wood rot repair industry is not only resilient to economic downturns but also primed for significant growth.
Own A Wood Rot Repair Franchise With Preservan
So now that you know the pros of owning a small business franchise and the cons of owning a small business franchise, you’re able to make an informed decision. If you’re ready to embark on your entrepreneurial journey, start today with owning a small business franchise like Preservan! Our successful and proven business model allows our franchisees to achieve their goals, and we’re confident we can help you reach yours too. Preservan franchises offer the best of both worlds, blending the benefits of a traditional franchise with the chance to make a positive impact on the community and the environment.
Now is the best time to invest in a Preservan franchise! Before you start your journey to owning a franchise, complete a quick evaluation to see if you qualify. If you have any questions or need more information, feel free to contact us. Our team is here to support you every step of the way!
Contact Preservan
Contact Preservan today to learn more about how to own a small business franchise.
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