4 Reasons That Franchising is a Great Career Change Option
As an budding entrepreneur or worker trapped in a dead-end career, one approach to consider is to enter the business world via a Franchise. So, what is a franchise? Its simple and a potentially exciting business model.
You, as the franchisee buy the rights from another party, the franchisor to open a new unit of their working and proven business. You can view a searchable database of franchise opportunities here.
As a franchisor you will be bound by certain conditions, which will be the franchise agreement, which means you must follow the owner/franchisor’s operating model and also pay the franchisor a commission on sales. In some franchise agreements the franchisor may offer support and training for a fee.
During my career, I’ve observed several colleagues leave jobs to go and start a new business, one of which entered a franchise and they are going strong today!
So, what are the advantages of franchising your way into a new business versus simply staying put in a dead-end job or starting a new business from scratch. There are four reasons that you might choose the franchise route.
1. Speed to market
This has to be one of the most compelling reasons to choose this route. Using a franchise with a proven business model, can enable you to enter a market very quickly and expand your business into new markets at lightening speed.
2.Insider Information
Most good franchises will offer support with training, marketing, sales and hiring and will even be able to give you advice on known obstacles, likely pitfalls and how to overcome them. They’ll also be aware of industry quirks and market specific opportunities and how to exploit them. Since poor management is one of the main reasons that new businesses fail, a franchise, offering good management support, is a great option to increase your chances of success when starting a new business.
3.Financial Support
Another reason that new business fail to get off the ground, let alone, expand, is a lack of financial capital. Many franchisors make some kind of start-up funding available to franchisees in the form of a a financial loan. Either the franchisor loans the money direct or they make arrangements with a third party who will finance franchisees if they meet the financial requirements. Typically financing is provided for: Franchise Fee, Startup Costs, Equipment, Inventory, Accounts Receivable, Payroll.
4.Instant Credibility
One of the biggest barriers to getting new customers will be gaining trust. While customers are excited by new businesses, they can be suspicious too which can act as a sales deterrent. It takes time to build a reputation, but having a trusted franchise behind you will give you a head start. Instant credibility will contribute to incremental early sales, giving you the chance to prove yourself and further enhance your reputation.
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