There is a reason why so many entrepreneurs and businessmen believe that you are giving yourself a great chance of succeeding in this life if you start a franchise. While it is tempting to make your own business and brand, this often involves a lot of risks. In contrast, buying a franchise, like a UPS Store for sale, is the most cost-effective and risk-averse way to go into business for yourself. Here are five reasons that show why.
1. Better Odds
If you are worried about the prospect of failure, a franchise will appeal to you a great deal. Franchise owners have around five times better luck at staying in business after ten years as compared to new business owners.
While it is scary to start a franchise, there are plenty of known quantities in these ventures. Most big companies have a decades long history of franchising, which shows potential owners the chances of them succeeding at a specific location. It is also widely known that certain companies offer a lot of support to franchise owners when they are starting out.
3. Investment Returns
When you try to sit down and calculate your return on investment for a new business, you are often doing a lot of guesswork and estimation. However, franchise owners have real data in front of them that shows whether they can make money within three, six or twelve months.
Aside from training and other support, franchise owners also have protection during these endeavors. While a franchise owner does not want the store to fail, neither does the parent company. They will do everything to help you make the franchise a success.
While people put their money into small businesses all the time, most of the financing is done through business loans. If you want to start a franchise, it is a lot easier to get a loan for this project than it would be for an independent small business.