“Why should I
pay a franchise fee and royalties for something I can do myself?” This is one of the topics covered in the
“Business Myths” chapter of Business Fits.
If someone can in fact do everything that a franchise provides, they
should not buy a franchise, but this would be a very rare occurrence.
In today’s
complex business world, it is impossible to be an expert in every area of
business. It is true that expert advice
can be retained in areas in which you are deficient, but that probably will
cost more than franchise fees.
Extensive
market research needs to be done before starting any business. Reliable market research is expensive and
time consuming. This research is already
done for you with a good franchise.
A major cost
of an independent startup business is the initial learning curve. This can be a primary cause of failure. In my opinion, the most important thing a
franchise provides is a proven business system.
You are not reinventing the wheel.
One of the
most frequent objections I hear about buying a franchise is, “I can do it
cheaper.” This is costly error. A good franchisor will make sure a
prospective franchisee is properly financed to succeed. Under-capitalization is the number one reason
an independent business startup fails.
Today’s
consumer demands a certain image and a minimum level of service and
selection. An independent starting on a
shoestring cannot provide this level of professionalism.
Marketing is
essential to any business and the most often overlooked element by independent
startups. A franchisor has developed a
detailed marketing plan that is an integral part of the business system.
The market is
constantly changing and keeping up with those changes is a challenge for every
business. It is hard if not impossible
to maintain continuing market research to keep ahead of these changes while
managing daily operations. Feedback from
the franchisee network makes it easy for a franchisor to keep up with market trends.
A franchise
may not be the right option for a new entrepreneur, but it should be considered
and not be ruled out because of the franchise fee and royalties. A franchise may be the easiest and cheapest
way to be successful and achieve your goals.
Learn more
about franchising and other business opportunities in Business Fits: How to
find the right business for you!
No comments:
Post a Comment