Why Buy a Franchise in Raleigh
Starting a business is an adventure that challenges and rewards in equal measure. Everybody wants to be their own boss, but not everyone has the ambition to go for it, and the fear of taking on great risks is often a deal breaker. Fortunately, for savvy entrepreneurs in the Research Triangle, this is a hurdle easily leapt.
Buying a franchise is the perfect example of minimizing risk while maximizing reward. If your goal in starting a business is to take control of your career and make money, it's the best way to be sure your business model works.
Franchise Ownership Is a Safe Bet
The biggest difference between purchasing a franchise and starting a company from scratch is that you're buying into a proven system. You can research existing franchises, and bank on the fact that their success can be replicated by somebody with the business acumen to run a company. In short, you remove luck from the equation and invest in your own skills and knowledge.
Want to open a hobby shop? There's a brand out there that has already done the legwork. Looking to build the greatest landscaping company in Raleigh? Somebody else is 20 years ahead of you, with 20 years of investment and experimentation you can benefit from today.
A franchise is a company with a proven track record, brand recognition and, often, corporate support. If your dream company is a vanity project, you're better off going it alone, but for everyone else, a franchise offers greater security.
What to Expect When Starting Your Franchise
Before you make the leap and buy into a franchise, there are a few key things to keep in mind. If you understand and accept these factors, you're probably ready to start.
First, the up-front cost of starting a franchise can be steeper than putting together a start-up. Depending on the business, the initial investment can range anywhere from $1,000 all the way up to a quarter million. When we're dealing with real estate and heavy equipment, those larger price points make sense, but it's tough for most people to make an investment like that all at once.
It's important to remember that you still have to pay for those things when you go it alone. You might get to spend the money over time, but you're still going to spend it, and it will usually cost much more in the long run. When you own a franchise, you have the luxury of knowing your investments are proven to work. You won't have to try and fail, cut your losses and change your plans on your way to a solid business.
What matters most is the royalty taken by the franchiser. Is it fair? What are you getting back, on an ongoing basis, to justify giving up a cut of your profits? Often, the return you get out of brand recognition and marketing is more than enough, but if the royalty seems a bit steep, you'll want to make sure it's justified.
Some franchisors offer more support than others. As the saying goes, franchise owners are in business for themselves but not by themselves. Depending on how you want to do business, you might prefer to be left alone most of the time or want a little more guidance. Both options are out there.
How much freedom do you need to manage your business? Some agreements are pretty strict, locking you in to suppliers and practices. This can be fine, but it's something to consider. Other agreements are fairly open, so if freedom is a deal breaker for you, there's still hope you can find a good match.
Do You Want to Buy a Franchise?
If you're interested in running a franchise, LINK Raleigh can connect you with sellers at no cost. We'll help you find the perfect business opportunity and ease your transition. Call our office today at 919-299-9880 or email us at inforal@linkbusiness.com to set up a meeting with a broker today.