MANILA, Philippines - Investing in a franchise can be tricky. Obviously, the market is loaded with options, and often, one’s success rests on an investor’s effort of finding a proven business.
A credible, reliable franchise business may come out more expensive, versus opening a concept on your own, but it does bring the benefit of sharing in a company’s brand, and operation success, which, on your own usually will take years to develop if you are a start-up.
Here are 5 reasons why a franchise is a better business choice:
1. High success rate
A USAID Study conducted on new businesses showed that over 90% of those who franchise succeed even after 5 years, vs. only 20% for those who started new business ideas.
2. Be your own boss
You own your franchise and every minute you spend on it goes back to your business success. No need to answer to bosses because you are now your own boss.
3. Win-Win Partnership
Franchising gives you, the franchisee, the support of an entire franchise business system while in return your give your time and effort to build your franchise business. It's a perfect win-win partnership.
4. Be in business for yourself, but not by yourself
Even if you have many great small business ideas, it's hard to start it yourself. With franchising, you can bring your business idea to life with the support of an entire franchise business system and regular support from the franchisor.
5. Replicate a proven brand & system
Franchising is duplicating an already proven brand & system, so you have less risk than starting new small business ideas. As a franchisee, you can build on the experience of the franchisor & other franchisees to help you succeed
At the end of the day, the best benefit one can get from investing in a franchise is the ability to raise capital or create wealth for yourself, and gain the elusive financial freedom because in a franchise set up, the franchisor is able to provide franchisees a more calculated way of running a business where costs, sales and profits are properly projected.
Franchise Talk is a content partnership of ABS-CBNNews.com with Francorp Philippines and U-Franchise Sales and Management. For more on franchising, visit www.francorp.com.ph and www.u-franchise.com.ph.
About the author:
Sam Christopher Lim is the President of U-Franchise, the sales and marketing affiliate of Francorp Philippines. He has over a decade of global marketing experience from Bangkok, Shanghai and most recently London as senior global brand manager for Unilever. He is a multi-awarded marketer who graduated with distinction from Oxford University and was awarded with the Young Market Masters award. He is also currently Chair for ASEAN integration for the Philippine Franchise Association.