Why is franchising a good business option?
31 Aug 23
You’ve decided: it’s time to take control of your career and have more financial freedom. But should you start your own business from scratch or buy a franchise?
Here, we explore why franchising can be a good business option to consider.
First, the facts
In Australia, there are over 1,000 franchise brands to choose from – and the entire industry is valued at a whopping $172 billion. Moreover, in 2021 the franchising industry grew by 1.5% and is predicted to grow even further in future years.
Even more impressive, small businesses (many of which are franchises) make up 98% of all businesses in the country and employ over half a million people.
So as you can see, buying a franchise is a popular choice for Australians who want to start their own business.
Business without the uncertainty
If you start a business from the ground up, there are a lot of unknowns. Is your product or service a good idea? Is there a market ready and willing to buy it? Where will you find those clients? How much money will you need to spend before you break even?
With so much uncertainty, it’s easy to see why half of small businesses fail within the first five years!
When you buy a franchise, you can tap into a system that has the business structure and support you need to succeed – which makes it a less risky and expensive option than trying to figure it all out by yourself.
While you go into business for yourself, you’re never really in business by yourself. And that’s because the franchise model provides a huge amount of certainty. You know the idea will work because it’s already been proven to be profitable. You know you’ll find clients, because often the franchisor has them already lined up – and they’ll support you to find and nurture your own, too.
Business without the expense
If you start a business alone, you’re responsible for researching and purchasing products and equipment, undertaking training and development, finding your own accounting software, making your own website, designing and printing your own uniforms, creating your own processes and procedures, understanding all the legal bits, buying liability insurance…the list (and cost!) goes on.
Compare that to buying a franchise business, which gives you access to shared services. That means the cost of technology, tools, marketing, software, products and equipment are included in your franchising fees and shared across the entire network, making them much cheaper and easier to access.
This can make a huge difference during turbulent times (see below), as you can keep costs down and stay competitive.
Business with a support network
When you start a business by yourself, the downtimes (whether they’re caused by the economy or even personal issues) can be downright difficult to navigate. In fact, some business owners never recover.
When you start a franchise, you can get through the tough times together. A reputable franchisor like V.I.P. will have your back with systems, solutions, support, advice, training and an in-house team to ensure you can continue to build your business.
Better still, you have an entire franchisee family to lean on, so you never have to feel alone.
A good business option
As you can see, buying a franchise in Australia makes good business sense. Let’s recap the reasons why:
You can join a growing industry with thousands of franchise opportunities.
You can work for yourself with all the support and expertise of an established, reputable and proven business model.
You can reduce the risk of starting and growing a business.
You can feel confident that your business idea has been tried-and-tested and has clients ready to go.
Of course, all this depends on the franchise brand you decide to go with. Make sure you choose a franchisor who has been up and running for a long time and has highly satisfied franchisees.
If you’d like to join a well-loved Australian brand that wants to see you succeed, become a franchisee with V.I.P. today!