8) Credibility with banks and investors
With franchises, banks and investors are more likely to work with you. It’s hard to secure a loan without any experience in business, but if you can prove that you’re willing to invest in your own franchise—and if it comes with a proven business model—the lending institutions will be much more receptive. This goes for investing, too; when venture capitalists see that you’re serious about your idea and have invested money into growing it yourself, they’re more likely to be receptive. In both instances, banks are more confident knowing that there’s something tangible behind your dream business.
9) Buying a franchise is affordable, but you can still make it profitable
The more franchises for sale that you look at, the better understanding you’ll have of price ranges. If it’s important to be hands-on in your business but you can’t afford to spend a ton, look into a franchise as a cost-effective alternative. But don’t expect every franchise opportunity to be profitable right out of the gate; investing in any new business will take money and time—and there are no guarantees it will work out. The secret is making sure you’re diligent and thorough from beginning to end.
10) Enjoy financial security for life!
The ideal way to get into business for yourself is to start a franchise. Unlike starting a standard small business, in which you have virtually no financial security (you are personally responsible for all liabilities), when you buy a franchise, your risk is shared with your franchisor. By paying an upfront fee and/or royalty fees based on sales, as well as other fees based on the percentage of profits (or lack thereof), you have steady money coming in from your franchisor. With that steady stream of income comes financial security.
Interested in buying a franchise business?
Franchising is one of today’s fastest-growing business formats and many people are buying into it, but there are several factors you should keep in mind before taking that first step. First, recognize that a franchise represents an investment—and not just in terms of money. Depending on your commitment level, buying a franchise can mean giving up control over things like pricing, product development, and employee hiring. While these areas might seem trivial when compared to others in small business ownership such as real estate or financing (or even employee management), franchising means you won’t have total control over your business operations. As with any small business purchase, take time to understand what types of risks and rewards your choice could bring. However, if a franchise sounds right for you why not browse our online list of franchises today to find the ideal franchise for you at Franchise UK.