The employment landscape in this country has changed dramatically over the past few years, due in large part to the rapidly expanding Internet capabilities of everyday workers. The magnitude of these changes comes as a surprise, yet the direction has long been thought of as inevitable; economists had predicted for years that the expanding capitalization of the internet would lead to an ever increasing army of freelancers and small businesses.
The groundswell of interest in launching a self-directed business has taken root in urban and rural areas alike, as well as everywhere in between. While small businesses are now providing the bulk of new jobs in this competitive market, they also are lasting longer than ever. In years previous, startups often had the threat of shuttering looming over their shoulder at every step of the way. Yet today, startups are seeing growing success due to increased community support for local business and growing market penetration through innovative uses of internet marketing and broad research capabilities.
One often overlooked, yet incredibly lucrative business opportunity for entrepreneurs has always been the option to franchise an already successful business. This may seem like a complicated concept, but the idea is actually very simple. Existing establishments like McDonalds or Office Depot lend their name and business practices to an investor through a franchise opportunity. The investor then opens a new business within the same brand, but under his or her own personal management rather than working to build a competing business from the ground up. Opening a franchise location is a fantastic way for you to get your foot in the door in an industry that you are passionate about but may not have the background knowledge that will make you competitive from the starting line. Franchising is also a great way to beef up an investment portfolio for well-established business operators.
The key takeaway from a franchised business is its turnkey nature. The primary expense for new business ventures is the marketing budget. In order to make any money, you need to attract clients. But how do you draw in new customers if they have never heard of you?
Franchising solves this problem that can grow into an out of control capital drain. When you franchise, you are opening your own store—that you own outright—but you are able to slap on a well-known brand name above the door. This means that drop in business is actually a reasonable expectation rather than a pipe dream. Not many hungry lunch goers will take a chance on the new Frenchy’s Fried Chicken that just moved in to the next strip mall, but you will certainly see a steady trickle of customers interested in your offerings if you open a new Popeye’s instead.
Franchising also alleviates some of the natural pressures of competition. As a Popeye’s location you will be serving Popeye’s chicken, not your own take on it. This means that your restaurant will have its ingredients sourced from the same raw materials as all others in the chain. This is the same with other services; UPS franchises are all operated based on the same foundational principles. This means that your customers will arrive expecting a professional and familiar experience rather than passing on your operation altogether because they weren’t sure what to expect and looked elsewhere for the fulfilment of their needs.
Franchising is a great opportunity no matter where you currently find yourself in investing life. If you have ever considered building your own business, you owe it to yourself to consider launching it with all the tools, help, and branding power that comes baked in with a franchise.