5 of the Greatest Advantages of Owning a Franchise
Advantages of franchising over a start-up business
So, you’re considering investing in a Paint Pinot franchise? That’s fantastic! We’re thrilled to hear it. The advantages of owning a franchise are huge. But we get that you may also have lots of questions to ask!
The decision to invest your hard-earned money in any business model is a serious one. But franchising is a business model that has proven to be successful for many people. In fact, Business Queensland (include link thttps://www.business.qld.gov.au/starting-business/buying-business/buying-franchise)states that franchises have a higher rate of success than start-up businesses. That’s a pretty big advantage right there.
Is buying a franchise a magical ticket to success? Almost
Success will come down to how well you run your business, look after your clients and the work you’re willing to put in. In other words, you’ll need to run your business intelligently. But the advantages are real.
Let’s look at five of those advantages right now:
Advantage 1 – You don’t need a degree in business to run a franchise
You don’t even need experience in running a business. It sounds a little crazy, but it’s true.
Because when you sign on as a franchise partner, you are generally given extensive training on running the business. You are given the policies and procedures needed to run the franchise like a well-oiled machine. You are given access to the knowledge, experience, and industry secrets we would usually keep strictly under wraps. And there is often ongoing support on hand so that if you need advice or have questions, you have someone with experience to go to.
Many people mistakenly believe that you need experience in the industry in which the franchise operates. That’s certainly not true of Paint Pinot. You don’t need to be an artist or a chef. The business model allows you to employ people to take on either or both roles for you.
Advantage two – Investing in a franchise is lower risk than investing in a start-up
When you invest in a franchise, you’re investing in a tried and tested business model. The parent business or the franchisor has successfully run the business for years. They’ve gone through the trial-and-error processes of figuring out what works and what doesn’t.. These business models have proven to be effective and profitable when run the right way and when in the right hands.
Advantage 3 – You have the presence of a bigger business without the responsibility of running a large corporation
Franchises often look like big businesses rather than a series of small businesses owned by a myriad of individuals. Take McDonalds, F45, and Just Cuts as proof positive of this.
Being part of a franchise, gives you a certain presence in the market, a reputation, and an established brand that clients already trust.
You don’t have to spend time getting your business name out there; it’s already out there! This takes one of the most challenging steps of establishing a business away.
And the franchisor generally takes on the primary responsibility for keeping your name out there via brand advertising and marketing strategies.
The incredible beauty of the franchise business is that you look like a big business, but you only have the responsibility for running your franchise/s. You also have independence – you’re your boss. But, you don’t have to have the knowledge or stress of running a vast company… that’s left on the shoulders of the franchisor.
Advantage 4 – Securing finance
Banks and other financial institutions can be extremely wary about lending money to start-up businesses. And there’s a good reason for this. It’s estimated that one in three new small businesses in Australia fails in their first year of operation. Okay, so the odds aren’t great, but they’re not dismal, so what’s up with the banks?
Let’s keep digging.
By the end of the second year in business, two out of four new businesses fail.
Sadly, by the fifth year, three out of four new businesses have failed.
You can see why banks are therefore hesitant about lending money to brand new start-ups – they’re afraid they won’t get their money back.
But things improve when we get to franchise businesses. Loans are generally easier to secure for a franchise business than they are to start an independent business.
Why? It goes back to the fact that franchises are not essentially start-ups.
They’ve got a proven business model, and banks and investors find this reassuring.
In addition to this, it is often cheaper to buy a franchise than it would be to set up a new business of the same type. That takes us to advantage five.
Advantage five – Tried and Tested Quality Materials
Let’s face it, if you had to go out and buy canvases, paints, brushes, food, and drink supplies on your own, as a small business, it’s going to cost you in trial and error in finding quality materials that deliver great paintings.
Because as a franchisor, we have done all the hard work in finding reliable and quality suppliers that fit in with our mission and deliver exceptional products that allow clients to produce beautiful works of art.
The next step to owning a franchise
If you feel like you’d be up to the task of running a franchise, the next step to take is to get in touch with Paint Pinot and find out about the exciting franchise opportunities we have on offer.
We might be a little bit biased, but we think it’s one of the best franchises to invest in.
You can read about the reasons we believe you should franchise with us right here.