What Are the Advantages of Buying Into New Franchise Opportunities?
Booming multinationals or giant retail chains are not a miracle. They are a result of labour and shrewd business tactics of highly motivated individuals, who worked hard to achieve their goals. Transforming an idea into a successfully running company does not happen overnight. It needs a lot of drudgery and teamwork. The struggle and risk of failure deter many driven and passionate individuals from taking a step forward into the world of entrepreneurship. However, the road to becoming a business owner does not have to be strenuously long and filled with hurdles. The process can be easy and short if you decide to buy an already established business that comes with a solid customer base and brand equity in the market. In fact, buying a franchise for sale in Australia is even more advantageous because it has its own rewards. Instead of being on your own, you get the support of the parent company which is happy to help your endeavour at every step of the way.
The popularity of franchising in Australia can be gauged from the fact that the industry is expected to generate revenue of $177 billion in 2017-18. The data shows that franchising is seen as a viable option to branch out into new terrains and gain a wider audience. Similarly, it is an uncomplicated and stress-free alternative for ambitious individuals to become their own boss and control their financial prowess. Buying a new franchise opportunity rather than a business for sale makes more sense for people who want to work independently yet need the backing of a seasoned business person to offer advice and show the way forward. Depending on your need and budget, you can opt for a new franchising opportunity that has many advantages over pursuing the one which was pre-owned. You get a clean slate to start your venture based on the proven business model. Also, the first-time franchisor is equally involved in the establishment of the new unit as the buyer. It is the first experience of branching out for the owner, so it is bound to be more special and involving. Besides making the buyer comfortable with the operations, the owner shares the responsibility of setting up the new outlet and works in tandem with him/her to help the unit to succeed. If you are still undecided about the kind of venture to invest in, then take a look at the benefits of buying a new franchise to make an informed decision.
Advantages of Buying Into a New Franchise Opportunity
1. Association With Brand Name
The franchisor is a well-established brand in the market which has an impact on the target audience. Naturally, the owner must have spent a lot of money on acquiring a stable and competitive position in the geographical area. The parent company must have reached the status of an established reputable brand after years of being present in the industry and offering a service or product quality that is better than others. The franchisee instantly becomes the authorised user of the brand identity, logo, marketing collaterals without making an effort. As the audience associates with the brand name, the franchisee consistently benefits from this.
2. Substantial Support
The head office or corporate headquarters is ready with unconditional support for the new team and set-up. It is the first branch of the business, so it is given a lot of attention and prominence until it reaches the break-even. The parent company offers advice, business policies and procedures, extensive training, and ongoing support. They make sure that everything falls into place for a smooth ride ahead.
3. Low-Risk Business Model
Armed with a proven track record, the franchisee is at a lower risk of failing than an independent business owner. The brand name is already a part of the market and enjoys widespread popularity among the masses. Customers will be more attracted towards a product of a franchise rather than buying from a new company which does not hold any goodwill in the industry. The audience is already aware of the products/services, and there is no time or energy wastage in building a reputation and creating brand awareness.
4. Location Advantage
Any business plans to branch out after thorough research and analysis of the market and finds a territory which will prove to be most profitable. The owner makes sure that it doesn’t overlap with his/her own operating area and there are no strong competitors who can eat into the market share. The strategically positioned new franchise is often located in a high visibility precinct which attracts high-passing foot-traffic.
5. Secure Financing
Every entrepreneur requires financing to start a business. However, it is quite challenging to secure finance for a business that is just an idea on paper. The financing entities like banks, investors and money lenders need concrete proof to lend a lump sum amount to an individual. That is why many loans for start-ups get rejected. On the other hand, it is quite easy to convince the lenders about the success of a franchise and secure capital for it.
6. Set-Up Support
The best part about buying a new franchise is that the franchisor takes the responsibility of setting up the shop for you and making it a turnkey operation. When you begin operating, you are already equipped with all the inventory, staff, amenities, instructions and training. The franchisor provides an excellent mix of furnishings and equipment that helps to maximise the efficiency of the new unit. Thus you can sit back and relax as the supervisor and do not have to get your hands dirty.
7. Lower Marketing Costs
For a start-up, a significant part of the budget is spent on marketing and branding. Whereas for a new franchise, the marketing budget automatically gets halved as the unit benefits from the marketing endeavours of the parent company. In most cases, the point of sale material is also provided by the headquarters, and they take care of advertising and online promotions by charging a small fee.
If you have been waiting for a lucrative opportunity, then it is time to snap up the one being offered by an established business intending to branch out. It is the fastest and effortless way towards becoming an entrepreneur. So look for a new franchise for sale and make your way to the top with utmost ease.