Most people who want to be in business have had a hard time in planning due to financial reasons. The element of capital is very pivotal that it can sometimes define the whole blueprint of certain businesses. This is especially true for those who have limited financial resources. This is the reason why franchising is a good option for most small-scale entrepreneurs who want to start a business but don’t have a whole fortune to invest.
1. It has a lesser risk of failing.
Because the business model and systems have been applied and are currently effective, franchising fosters lower risk in terms of business failure compared to other start-up businesses. This saves the franchisee from potential monetary loss due to ineffective business strategies. In franchising, there are also low-cost franchises available that allows franchisees to start their own business with lesser capital needed.
2. There is no need to spend on heavy business planning.
Planning for a business needs
in terms of time and people. When we sit down to plan on something very big, we take ourselves from any other income-generating activity to concentrate on the project at hand, thus, there will be a loss of earnings. We also employ people who can help us in planning, so we also spend on their fee and on other miscellaneous expenses that may be incurred during our appointments with them. But with franchising, we can eliminate the planning process altogether, or we can choose to minimize it with the aid of a consultant and/or the franchisor, himself.
3. You get free marketing and advertising.
The best thing about franchising is that we need not personally do advertisements and marketing. We allow the franchisor to do that for us and benefit from the feedback of the other franchise branches. This saves us a lot of bucks considering the cost of marketing these days.
It takes money to make money. But with franchising, you no longer need much to earn much. With the help of a franchise consulting agency like The FCC you can succeed in doing business by carefully choosing a franchise business that will fit your personality and will deliver to you the results you desire. At The FCC we help individuals find their perfect fit in the business world that will create their steady source of income. We guide individuals in their journey from proper franchise selection, to consultation, up to in-depth discernment if franchising really is the best option for them.
If you are a budding entrepreneur who is so eager to invest in a franchise a business today, call Ron Sacco at at 1-800-388-2810 x 402 to find the perfect franchise opportunity that will give you your long-awaited break.
As a franchise consultant, I often have clients who fear the systems, procedures, rules, policies and procedures they have to adhere to as franchise owners equate to “Straitjackets” that stifle innovation and creativity.
While, yes, you do have to comply with the franchisor’s systems … for example, there are 3 pickles on the McDonald’s Big Mac, not 4, not 2 … but 3 and ONLY 3. But, franchises create systems from years of experience and trial and error. That’s one of the greatest reasons for investing in a franchise -- you don’t have to “invent the wheel” yourself.
That said, can you “make the wheel rounder?” The short answer is … absolutely!
Here’s the favorite example I share with my clients: to this day, the best-selling sandwich in the history of McDonald’s is the Big Mac.
The Big Mac was developed by a franchisee!
Cutting and pasting from Wikipedia, here’s a brief history of how this best-selling product came to be:
The Big Mac had two previous names, both of which failed in the marketplace: the Aristocrat, which consumers found difficult to pronounce and understand, and the Blue Ribbon Burger.
The third name, Big Mac, was created by a 21-year-old advertising secretary who worked at McDonald’s corporate headquarters.
The Big Mac proved popular, and it was added to the menu of all U.S. restaurants in 1968.
Even well-established franchises that have hundreds of franchisees and hundreds of units throughout the US, innovation is encouraged. The franchise companies realize they the great advantage of having many, many franchisees who are all working the same processes. With that many smart people operating the same businesses, some franchisees are inevitably going to find ways to accomplish procedures more efficiently and/or effectively.
Franchise companies embrace this fact and actually create venues to promote improvement and innovation.
Every well-developed franchise company eventually forms a franchise advisory council made up of franchisees from throughout the system. Franchise executives meet with their advisory councils typically each quarter and during these meetings, the executives report on progress from the past quarter and objectives for the next quarter and for the year. But they also use this forum to solicit input from the franchisees.
What’s working well? What’s not working well? How can we improve? What are the franchisees in the field saying? Are there better ways to accomplish what we do?
Even more, at just about every annual conference franchises in any industry conduct, typically each year, they present “round table sessions.” These sessions are usually conducted in large meeting rooms at the franchise convention hotels. In the rooms are a half-dozen or so 20-seat round tables and at each table sit franchise owners who have found a technique to accomplish the systems of the franchises more efficiently and/or effectively.
Franchisees attending the conventions move from table to table every 15 or 20 minutes or so at the sound of a bell in order to be able to learn from each of their fellow franchisees who are hosting round tables.
Franchise companies treasure such events because when a franchisee learns how to improve procedures, advertising, marketing, or operations from a fellow franchisee, the franchisees are quick to adopt the new methods.
No … franchising is not a “Straitjacket.”
There is plenty of room for innovation and improvement and many franchise owners enjoy helping the entire franchise system evolve, improve and thrive.
Who knows? After you invest in a franchise, you just might be the franchise owner who creates your franchise system’s “Big Mac!”
Dave Cooley, Franchise Consultant
Let’s learn more about franchising together.
Call me: 720.259.9475 (Denver – Mountain Time)