The demand for entrepreneurship has never been higher, with more individuals looking to start their own businesses in pursuit of work flexibility, passion, and the desire to be their own boss. However, it is important to note that many new businesses fail before they even take off. According to statistics from Turner Little, more than 39,000 businesses failed between 2007 and 2016 within their first year of operation. This is where becoming a franchisee with an established brand can significantly increase the chances of success, as it comes with a multitude of benefits that are extremely appealing to entrepreneurs.
Industry knowledge is a significant advantage of joining an established franchise, as the wealth of experience from successful business operations can be passed on to the new franchisee. The franchise brand will have undergone a variety of opportunities and threats within the sector of choice over the years, making it the ideal environment to generate favorable returns on investment.
Starting up a new business is fraught with hurdles, but a proven and successful franchise can offer startups additional support during the crucial early period, and can provide financial backing and help new companies negotiate better contracts for essential supplies at a lower cost.
A favourable agreement is often seen as the cornerstone of starting a new business, and franchise organisations can secure better contracts than a new startup with minimal experience or capital.
Another significant benefit of joining a franchise brand is the already established customer base. Building consumer loyalty takes a lot of time and resources, so using an established brand name from the very beginning can provide a massive boost to early performance.
Franchise agreements also give the new business owner entrepreneurial freedom. The perfect balance is struck between support and individuality, allowing entrepreneurs to operate their franchising business in a way that suits them and the franchise model.
In conclusion, the advantages of starting a business as part of a franchise are numerous and greatly increase the chances of success. This is particularly relevant in highly saturated markets such as coffee shops; competition is fierce, but joining an established coffee franchise would offer entrepreneurs the benefits of years of experience, a proven track record of success, and the freedom to open a coffee shop according to their business vision.