Benefits of going from freelance to franchise owner
If you are a freelancer looking for a new business opportunity, franchising might be an option that you have already considered. Franchises are an ideal alternative to starting your own business if you want to start working with an established brand as soon as possible and run a company that is already well-known, has tried-and-tested ways of doing things, and provides you with guidelines that those starting up from scratch would only be able to figure out through trial and error.
Franchising is often an ideal choice for freelancers who want to have some additional job security along with the freedom of being their own boss and running their own business. Here are some of the many benefits to consider as told by Franchise Local.
What are the benefits of franchising?
Starting a franchise business means that you get a ready-made brand to choose from that already has a track record of success. There are various franchise opportunities to choose from, each in various industries with something for every kind of freelancer to consider, whether you are interested in running your own retail business, want to run a restaurant or start a tutoring service. You can browse franchises for sale online to find one that is an ideal fit for you. Along with some of the big brands that offer franchise UK opportunities like McDonald’s and Starbucks, you can also find many other smaller businesses that might be cheaper franchise options to start for those on a tight budget.
If you’ve always wanted to take your freelance career to the next level by starting your own business but simply aren’t sure where you would start with that, buying a franchise could be an ideal opportunity, with plenty of guidance and advice on hand. After all, when you purchase a franchise, you are starting to work with a brand that is already established and often quite successful, so there will be ready-made brand guidelines to follow that have already been proven to work in the past. If you are concerned about the trial and error stage of starting your own business and want something with less risk involved, a franchise could be an ideal opportunity for you.
While there are more fees to pay as a franchisee, ultimately, it is your own business to run, and there’s unlimited earning potential to enjoy. When you follow the brand guidelines, take steps to market your business to your customer base, and understand how to run the franchise successfully, you really can earn a lot of money from it. And the best part is that compared to starting your own business from the ground up, a lot of the hard work has already been done when you take on a franchise business. You don’t need to spend your time figuring out what works in terms of marketing to customers or which products are going to sell the best - the franchisor will have already figured all of this out for you.
Easier business funding:
Getting funding to help you get started with your new franchise business is often much easier compared to getting funding for a business that you’ve started from scratch. That’s because when you start a franchise, you are working with a known and proven brand that will have a track record of other franchise success stores to put in front of lenders. There is far more for lenders to go by when you take on a franchise compared to starting your own business from the ground up. Therefore, you are likely to be a more favourable applicant when it comes to getting bank loans and other forms of business finance designed to help you get your business started.
As a franchisee, you will also have the chance to take advantage of the numerous business relationships that the franchisor has already established with suppliers, designers, marketers, and other professionals who can help you set your business up and position it for success. Most of the time, franchises will already have strong relationships in place that will be easy to manage, making it easier for you to get started, as you can skip the part where you find professionals to turn to - they are already there.
Better success rates:
Starting a business is getting easier and easier, but a huge percentage of businesses still fail in their first few years of operation, often simply down to a lack of experience on the business owners’ part, or an inability to invest the right money into the right places. Coupled with a business that isn’t yet well-known and has to work hard to market to customers and encourage return customers, it’s easy to see why keeping a brand-new business going is often hard work. On the other hand, starting a franchise takes a lot of that effort away as it is a ready-made, established brand that already knows what works and what doesn’t. Providing that you follow the instructions given to you by the franchisor when you start, you will have a much better chance of business success with a franchise.
What are the disadvantages of franchising?
Of course, getting a franchise as a freelancer isn’t all sunshine and rainbows. While it’s an ideal way to make a living if you want to start your own business with less risk and an already established brand, there are also some disadvantages that you might find worth considering.
While you have some control over the day to day running of your business, such as who to hire and other basic admin decisions related to your franchise location, ultimately, the business and brand are not your own, and you will have very little control over what happens compared with running your own brand. For example, you might pay your franchisor a fee for marketing and advertising your business, but not get any say in what actually goes into the marketing strategies. It might not be the best choice of business opportunity for you if you want complete control over factors such as your branding, products that you sell, and more.
Increased reputation risks:
Unlike running your own small business where you can control the reputation of your brand, running a franchise isn’t always that easy. Since franchise businesses are made up of a number of small companies or locations all run by different franchisees. The actions of another franchisee could cause harm to come to the reputation of the business overall, including your franchise location.
For many franchisees, all the costs associated with running a franchise are another downside to consider. Not only will you be charged a franchise fee to get set up and started, but you might also need to pay further fees for marketing, hiring employees, employee training, products, and more. The franchisor will also typically take a cut of your profits, which is another factor that might make taking on a franchise a less attractive option for some.
All in all, starting a franchise business has several benefits for freelancers who are looking to take the next step up in their career to entrepreneurship. There are some downsides to consider, so weigh them all up carefully and decide if it’s the best choice for you.