While starting an independent business can come with a lot of unknowns and unpredictable legwork, a franchise provides the backing of a successful model that has already been established for you. And while franchise businesses are statistically more likely to succeed, they still require a lot of work and ask that you be willing to follow a pre-written set of guidelines.
Is franchise ownership right for you? Learn the advantages and disadvantages of franchising vs. starting a business so you can choose the best investment.
Arguably the most difficult part of owning a business is getting it off the ground, which includes writing a business plan, conducting market research, creating a winning product or service, site selection, and more. When you become a franchisee, a majority of the startup work has already been done for you. Now it’s up to you to apply the system and principles the brand has outlined to your own business.
BRAND NAME RECOGNITION
Among the advantages and disadvantages of franchising, you become intrinsically linked to the overall reputation of the brand, for better or worse. No matter how well-run, efficient, and successful your specific branch may be, your business is still tied to the national or global franchise name. If a scandal befalls the brand or another franchisee gets bad publicity, your business may be affected. Alternately, you will naturally benefit from the good name and positive publicity a brand receives.
Owning a franchise allows you to capitalize and build your business on a name that people already know and trust. Getting customers to recognize a brand takes a long time, but a franchise like MY SALON Suite is well-known before you even open your business’s doors. The value of franchising with a trusted name brand cannot be overstated.
A major part of what makes a franchise successful is its easily replicable system, which includes training employees at every location on how the business should run. The right franchisor is fully committed to preparing you for success. As the franchise owner, you can expect to learn about the operational requirements of the business, sales and marketing strategies, branding guidelines, financial management techniques, staff development and teamwork, and customer satisfaction. All these things are aimed at reducing the number of mistakes that any conventional non-franchise startup usually experiences. When it comes to advantages and disadvantages of franchising, training definitely falls into the former category.
When you become a franchise owner, the brand you partner with is equally invested in your success, and they will apply their expertise and resources to promote your business at every level. You will receive input on how to craft and execute effective campaigns of your own as well. The franchisor may provide a marketing plan that covers a market analysis, sales forecast, and budget to help you to advertise most effectively.
PATH TO FINANCING
One of the biggest barriers to starting your own business is the startup cost. Whether independent or franchise, this can be intimidating. When considering the advantages and disadvantages of franchising, you will see a lot of perks to being linked with a known brand when it comes to seeking financing. *SBA loans, in particular, are considered the gold standard in business loans, but they require meeting strict eligibility requirements.
The SBA reserves a portion of their loan allotment specifically for franchises, however, you may have an easier time qualifying for franchise financing than if you were to seek an SBA microloan for starting up an independent business.
*One important note: MY SALON Suite does not qualify for SBA loans. You can see all of our financing options here.
FRANCHISE WITH MY SALON SUITE
Buying a franchise with MY SALON Suite allows owners to enjoy the freedom, support, and potential of a brand named a Top Franchise for 2021 by Franchise Business Review, noted for its high earning potential and flexible semi-absentee ownership model. Beauty professionals will also enjoy the chance to control their own workspace, set their own hours, and conduct their business with the freedom and support of a brand that only wants to see them grow.MY SALON Suite is proud to standout as a winning franchise opportunity for entrepreneurs ready to take charge of their future with a world-class brand. To learn more about franchise ownership with MY SALON Suite, fill out our request form.