For many, the thought of opening their own business is an enticing endeavor. The idea of having the freedom to set your own schedule and have complete control over business decisions is one that fills daydreams at our desks. But in reality, the risks and potential losses are frightful enough to keep most of us from even trying. Franchising, however, offers the unique opportunity to have many of the perks of owning a business while mitigating the risks. Here are some of the top reasons you should consider buying a franchise rather than building a business from the ground up.
Lower Startup Costs
Getting a new business off the ground requires a lot of money up front that most people don’t have access to. The cost of this entry point can vary depending on the type of business you are starting. For example, opening a fitness studio will require you to fund the expense of leasing a space, buying equipment, creating a brand, training your staff, marketing your opening, and more! With so many demands on your financial capital, it can be hard for new business owners to accurately estimate the true cost of everything, leaving them out of money only a few months into their new venture.
Working with a larger corporation to open a franchise, on the other hand, comes with a clearer understanding of the startup costs required. This could include a franchise fee in addition to other startup expenses such as real estate, equipment, supplies, business licenses, and some more working capital. While it is an investment, you know more about the initial start-up costs when buying a franchise.
Easier to Finance
Finding appropriate financing for your own business can be a challenging and grueling process as you have to prove your value to lenders in order to receive any capital. Unfortunately, many lenders view small businesses as a risky investment because, statistically, most of them fail. Conversely, lenders are more willing to finance a franchise business because you will have the support and infrastructure of a larger brand behind you. In addition to third-party lenders, prospective franchise owners may also be able to obtain financing directly from the corporation they will be working with or through other sources only available to franchisers.
Support & Expertise
Starting your own business can be particularly challenging if you do not have the appropriate education or prior experience. Designing an effective business plan, understanding how to use appropriate marketing techniques, and developing an efficient training program for staff are all critical tasks required when becoming an independent business owner. But such extensive experience is not required when you open a franchise because you will have access to training resources and other support. In fact, many franchises provide training courses for you as an owner as well as your staff. This helps the franchise to maintain the quality of their brand and ensure the success of your location.
Plus, when you choose to start your own business, you will likely experience a lot of trial and error before you find success. This is not completely eliminated when you franchise as you may still be learning the most effective way to manage all your responsibilities, but you will have the support of those with more expertise of your specific industry and business model to help you along the way. This can help you avoid costly mistakes that could otherwise put you out of business.
Starting a completely new business from scratch means that you will have to create a brand and make consumers aware of what you do. This can be a costly and time-consuming process which requires a lot of creativity on your part. Owning a franchise, however, comes with existing brand awareness from day one. Some of your prospective customers will already know of the brand and products or services offered which can help increase your initial sales. Plus, it will be easier and less expensive to attract and educate new customers with a brand name that may already be familiar. And because you will be joining a larger organization, your individual location and business will benefit from any larger marketing campaigns your corporation runs whether at a statewide and national level. Owning a franchise is essentially buying a turnkey business that has a solid foundation for you to start building on.
It is an unfortunate fact that many small businesses fail. This can be the result of many factors working against you, but most owners tend to run out of money before they can really get their business off the ground and into the realm of success. But this doesn’t always happen immediately, meaning you could spend years building your own business only to watch it crumble in the end. In fact, statistics show that 20% of small businesses fail in the first year while 50% fail within the first five years.
Comparatively, a franchise is a proven system that operates under a larger organization with the owners primarily being responsible for the day-to-day operations of their single location. You will likely receive ongoing training and support from your corporation which can help you develop a better understanding of the product or service, marketing, managing staffing issues, and other aspects of business ownership. This type of support sets you up for success as a franchise owner. When you are running your own business, you are on your own.
According to research, the presence of franchise establishments have steadily increased over the years and now make up a significant portion of revenue and ownership across the United States. This is especially true for fitness-focused businesses as society has become more health conscious and a new generation of consumers has begun to seek out innovative, challenging, and fun ways to workout.
All of this combined with the existing infrastructure of a franchise makes your business more likely to succeed than if you were on your own. This fact is even relevant to securing funding for your business in the first place as lenders know there is less risk involved and a higher chance of success.
Choosing to open a franchised business provides you with many of the same freedoms as owning your own with a few added benefits. In both cases, you tend to have the freedom to set your own schedule and innovate new ways to market to or service your customers. But with franchising, you are also liberated from a majority of the stress and uncertainty of owning your own business. Of course, you will still have your fair share of these things, after all, you will still be operating a business. But you will have the support and resources you need to succeed which can help to alleviate many stressors. Franchising can help you liberate yourself from a boring desk job and give you more control over your own life.
The benefits of franchising are clear. You will have access to and experience many of the same advantages that you would if you opened your own business but without a majority of the potential drawbacks. With a lower entry point, you will be able to more easily access financing. As you start to get your business off the ground, you will have access to the resources you need. This along with existing awareness of the brand helps make your franchise more likely to succeed. When you open your own business, you are on your own. But when you start a franchise, you become part of something bigger and have a team to support and guide you throughout your new venture as a business owner.
Franchising with Rush Cycle
One of the fastest growing fitness studios in the United States, Rush Cycle strives to build a positive workout environment and community for our customers. We maintain a high standard of quality and convenience at all 18 of our current locations and will continue to do so at our 40 new ones. We carefully train our instructors to provide an adrenaline-packed cardio experience through the utilization of dimmed lights and music so our customers achieve results while having fun.
The Rush Cycle team has over 40 years of fitness franchising experience and offers comprehensive support for our franchisees from day one. We will provide guidance to you as you identify an appropriate market for your franchise, construct the studio, continuously market your location, and train your staff and instructors. Plus, our affordable entry point of $400,000 is opening more doors for our franchisees.
Opening a franchise allows you to run your own business with less risk. With Rush Cycle, you will always have the autonomy to make decisions with the safety and support of our organization behind you.