Are you thinking of investing in a franchise?--It could be the difference between whatever you're doing now and the life you want to live.
Ten Reasons to Buy a Franchise
Owning your own business will be one of the most challenging and rewarding investments you will ever make.
However, no matter how a business is structured, it is an investment, and investments always come with risk.
A high-quality franchise investment, combined with a highly motivated investor, has a significant potential for success while mitigating many risks commonly associated with startup businesses.
Success
One of the terrifying aspects of any financial venture is addressing the unknown.
How will your target market respond to your offering?
What unforeseen pitfalls await you down the road, and will you be able to address them adequately without losing the farm?
A strategic advantage of franchise investment is a proven business plan and successful track record.
You are buying into and benefiting from another companies success while avoiding the costly mistakes they inevitably made to get to where they are at now.
Training
Ideally, you're going to want to have experience in the field in which you plan to start a business.
However, knowing how to do the job and being able to sell it, manage customers, employees, billing, and accounts payable--all of the responsibilities that fall under an owners purview--are two entirely different things.
While not all models are the same, nor equal, a quality training program will consist of upfront and ongoing business management, customer service, marketing, and financial management training in addition to equipment and skill-based education.
Support
The success of the corporation exists in direct proportion to the success of individual franchisees.
It is a financially-mathematical requirement for the corporate office to maintain a proactive interest and investment in the success of their franchises if they expect to grow and prosper.
The proven track record and experience of the organization will allow it to provide the necessary knowledge and resources to navigate everyday business obstacles, e.g., payroll, customer service, and billing, as well as complicated issues like litigation and contract negotiation, ultimately allowing the fledgling startup to focus on sustainable growth.
Marketing
A healthy marketing funnel means more qualified leads.
More qualified leads mean more business and more money.
The best approach to marketing, especially for targeted local service-based businesses, is to build a comprehensive marketing strategy based on regional competition and target market demographics.
Those types of targeted channels can take years to establish, or thousands of dollars to develop.
While numerous tax and employment laws currently hinder the direct involvement the corporate office can have with a master franchise or franchisee, they typically provide initial, top-level digital and traditional marketing services on your behalf.
This approach provides the demonstrable benefit of freeing up new, likely inexperienced business owners to focus on making money, as opposed to business growth tactics and outreach.
Financing
One of the most common reasons listed for early business failure is undercapitalization.
Combining a lack of financial resources with a lack of experience is a recipe for disaster when the newly minted company encounters an inevitable stumbling block, typical among startup business owners.
The ability to finance your startup through a regional representative can be the key to the success of lower-income entrepreneurs who have the skill and work ethic to drive success but lack the credit or collateral to invest.
Additionally, SBA administrators strongly favor the franchise business model when assessing the feasibility of small business loans.
What that means is that you are more likely to get the funding you need from your local bank if your business plan involves investment in an established and proven model than if you were to try to fund an independent venture yourself.
Branding
The benefit and value of trading off of an established brand's name and reputation cannot be underscored enough, especially for a newly established company--benefiting immediately from the steadfast dedication of franchises that came before you.
Often, reputation-based referral marketing has meant the difference between the profitable success and early collapse for many organizations.
Exclusivity
Service-based franchises typically operate within a territory controlled by a regional manager, often referred to as a master franchise.
The master franchise acquires service contracts for the franchisee's and manages the critical customer relationships.
Among the numerous benefits, this approach ensures that the franchisees will not have to worry about competition from within the organization.
Freedom
In addition to the freedom a startup franchise has to focus on growing their business and improving their services by allowing the regional manager to market the organization, sell, close, and manage contracts, and provide customer service and billing, they also have the option of acquiring and maintaining their own customer accounts.
Customer account acquisition derived from your specific organization's success, and not via the sales and marketing channels of the regional office should always be yours to manage and benefit from.
The only caveat being that your territory manager, while likely more than willing to assist you in any way, will not be able to extend all of the protections an account acquired through regular routes would have provided.
This is not necessarily a negative mark as it allows the franchise the freedom to grow or not as they choose.
Return
The most critical aspect of any investment is its financial performance.
Vanguard Cleaning Systems doesn't just sell franchise businesses, equipment, training, and support; it provides contracted recurring customer accounts to bring an immediate introductory return on your investment.
This unique approach means that you start working with real clients right away for real money.
Risk
As mentioned, risk is an integral part of any investment.
The franchise business model reduces or eliminates common risks experienced by traditional startups through experience, financial support, and customer acquisition; three areas that have plagued companies of every size in the past.
As a Vanguard franchise, you can purchase as many additional accounts as you can handle or afford to take on.
This means that if you were to lose an account, for whatever reason, you could quickly replace them with a call to your regional office.
Takeaway
2015 numbers released by the US Bureau of Labor Statistics shows the five-year survival rate of businesses founded in 2010/2011 at just over 50%; that number declining to just under 35% since 2005/2006, or the last ten years.
Common reasons listed for these failures are:
- Poor management, both leadership and financial.
- Undercapitalization.
- No website.
- Lack of a viable business plan.
Vanguard Cleaning Systems of the Southern Valley can help you with all of this, and more.
Multiple franchise opportunities are available for those who are ready to join an award winning team.
In Bakersfield CA, call 661-395-3009
In Fresno CA, call 559-473-1790
