TechInAfrica – Starting a business is not as easy as many people might have thought. You will have sleepless nights, doubts, insecurities, rejections, and so on. Even more, there is a lot of challenges a businessman has to face when he runs the business, including financial and finding markets. It takes times for a business to succeed, sometimes it even fails without reaching a success.
As it is hard to start a new business, many people are afraid to give it a try from a zero point. However, there is another option for you—buying a franchise. Instead of starting a new business, franchise has a lower risk of failure.
Franchise is a joint-venture who runs a business through a contract. There are two terms involving franchise—franchiser and franchisee. Franchiser is the original business (owner) that has already succeeded in the market, while franchisee is given rights to use the franchiser’s name and sell its products in other markets.
Why is it better to buy a franchise instead of starting a new business? Here is why:
- A Franchise is already well-established
Starting a franchise will be much easier than starting a new business as it is already well-established. When you start a new business, you will have a high risk of losing much money through some errors and trials. Unlike starting a new business, building a franchise will have a higher success rate.
- A Franchise has a known-brand
When you start a new business, you will have to work much harder for your brand to be accepted in the market. As it has been successful in the markets, franchise has an established brand. People already know the brand along with its products. Thus, when you buy a franchise, customers already know your brand. You can focus more on delivering the best service to customers.
- Easy to get loans or investments to buy a franchise
If you want to get loans or investments from banks or investors, you will have to go through some record checking. However, if you want to buy a franchise, they will only check on the parent company, how it has been doing with the business. They will quickly decide to approve loans based on the parent company’s records, including how well it is accepted in the market, its sales experience, business development, and marketing
- No need to have been well-experienced in business
Franchise has already well-established, thus, its support system is also solid and experienced. This means that you do not have to involve a new marketing strategy to operate the business. You can use the proven strategies used by the parent company. This still helps you to succeed in your market.
- Less expensive
Even though you will have to pay the ongoing fee when buying a franchise, it can still be a lot cheaper than starting a new business with a high rate of failure. Starting a new business will take a lot of money as you have to face trials and errors during the process. Moreover, you will also have to spend money on marketing and testing different products in the markets. Compared to the franchise fee, it can be a lot more expensive.