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The Advantages of Starting a Franchise Business

If you are thinking of starting your own business in the home repairs industry, the idea of starting a franchise may have crossed your mind. For many would-be first-time entrepreneurs, starting a franchise is a much safer option than starting out from scratch on your own. And, whilst franchising may have some downfalls such as being unable to choose your own business name or products and the need to pay a fee to the franchisor, it’s also undeniable that this business route comes with a large number of benefits that well outweigh any disadvantages. Let’s explore some of them in further detail.

Ongoing Help and Support

Many aspiring entrepreneurs who are considering starting a franchise can often be put off by the idea of paying a fee to the franchisor. However, this fee certainly isn’t for nothing – in effect, you are paying for the constant support system which is offered to you as a franchise owner. This is especially useful if you’re a first-time business owner with no experience of running a company, as support from experienced members of management staff can help you to get your new business off the ground in no time, bypassing the often fatal mistakes that many entrepreneurs make when starting out on their own.

Big Name = Big Success

For new business owners, starting out and being up against the big names in the industry can be a huge challenge. When you take on a franchise business, you’re not competing with the biggest names – rather, you are one of the biggest names which gives you a significant advantage. Rather than being the ‘new business’ which little is known about, you can kick-start your career in entrepreneurship by going straight into the market with a well-known, and well-loved name behind you. Another benefit of this is that you’ll need to do significantly less building of your customer base. Big name businesses always have a fully established customer base, and as a franchisee you will be able to have instant access to these already existing customers.

Better Financial Access

One of the biggest obstacles that gets in the way for new business owners starting up a company is limited access to finance. Banks and other financial institutions are often reluctant to loan money to those starting out on their own, as there is no guarantee that the business will be successful and the owner will be able to easily repay the money borrowed. However, because franchise businesses are both part of a big-name business and have ongoing support systems available, they are at a considerably lower risk of failure than most other types of business. Because of this, banks and other financial lenders will often be much more willing to offer loans and other lines of credit to franchise businesses, as they see them as having more potential to succeed. If you’re trying to start your own business and the bank isn’t playing nice, a franchise could be a good alternative option.

Would you consider a franchise over setting up your own business? Let us know in the comments.

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