Observances such as National Entrepreneur’s Day make us especially grateful for our wonderful team of entrepreneurial franchise owners and thousands of local business partners at BirthdayPak. Small businesses are the backbone of our communities, and we take every opportunity to recognize them. National Entrepreneur’s Day, this year on November 19, 2019, also allows us to promote entrepreneurship and inspire you to explore alternatives to a traditional 9-to-5 job. It’s a great time to think about becoming your own boss and the five ways that franchising helps entrepreneurs succeed.
Proven Business Model
The first way a franchise helps you succeed is by providing a proven business model. This includes a strategy, operational practices, marketing, branding and systems. Having a proven business model typically means the ramp up period to starting your business is shorter and the business is fairly turnkey.
Training, Resources & Support When You Need It
With a franchise, “you’re in business for yourself, but not by yourself.” Franchisors help set up franchise owners for success by providing comprehensive training, resources at the corporate level such as research and marketing, and ongoing support as needed. When you have questions or challenges, there is someone to turn to for assistance. These efforts make the learning curve and navigating a new market easier.
Lower Start Up Costs & Easier Financing
Franchising can make owning a business attainable in ways that are more difficult when starting a new business. For example, some franchises (such as BirthdayPak) have low franchise fees, low overhead costs (with remote work) and no royalty fees. Financing is often easier to obtain since a franchise is perceived as a less risky investment, especially if the franchise is well-known.
Establishing brand recognition can take years for a new business. However, many franchises have the benefit of name recognition. A positive brand image can bring customers and profits more quickly. Strong brands demonstrate growth and are often recognized as a leader by external organizations.
What if you could never miss an important life event again? Entrepreneurs are often drawn to franchises because of the flexibility and work-life balance it provides. They can get the best of both worlds and achieve both career and personal goals. Working for yourself is hard work, but you can structure your schedule in a way that is effective for you.
The Proof Is in the Numbers
Still need convincing that franchises help entrepreneurs succeed? Just compare the success rate of startup businesses and franchises. IFA Educational Foundation conducted research and found that more than 90% of franchisees renew their agreements at the end of their contracts. FranNet also completed a survey with 1,260 new franchises from 2006-2010 and found 91% were still in business after two years and 85% after 5 years.
Contrast this to a report from the U.S. Bureau of Labor Statistics, and success rates are not nearly as high for startup businesses. Of small businesses that started in 2014, 70% were still in business after two years and just over half (56%) made it to their 5th year.
Invest in a Franchise That Is Invested in Your Success
Entrepreneurs, it’s your day! Start by exploring the many possibilities in franchising and consider how franchising improves the chances of owning a successful business for many entrepreneurs. However, not all franchises are created equal, so you’ll want to conduct due diligence to choose a franchise that will be a partner in your success. A growing national franchise such as BirthdayPak has a low initial investment, long list of awards and top-notch support.