For entrepreneurs who dream of business ownership, utilizing a proven system like a franchise will provide great benefits — giving you an advantage over the competition. Starting a business from scratch can be a frustrating, time-consuming and labor-intensive undertaking. It means you must learn about an industry, develop a business plan and a system and discover all the nuances of that industry. There will be many mistakes and a great deal of trial and error.
On the flip side, a franchise provides an opportunity to buy into an existing, successful business model that has a proven track record, a successful training program, a solid supply chain and expert technical support. In franchising, someone has already done the work of developing and establishing a viable business system — it’s up to you to utilize it and grow it. Thanks to the success of the franchise model, the industry is seeing burgeoning growth. In 2022, there were about 792,000 franchises, employing more than 8.5 million people. Based on an International Franchise Association study, franchises GDP is 3% and estimated at $521.3 billion.
While nothing in business is a sure thing, you have a better opportunity for success with a franchise. It is in the franchisor’s best interest for you as the franchisee to succeed. That’s why there is typically a lower failure rate for franchises compared with startup businesses.
This is due to the following:
- Franchisees face lower risk than independent business owners because of the franchise network.
- The franchisor has tested and tweaked the business model in multiple markets.
- By the time the business system is shopped around to franchisees, it has been well-established in the marketplace.
Ongoing Training and Support
Another benefit of franchising is the training, assistance and ongoing support you receive from industry specialists. A franchise is a turnkey operation, giving you all the necessary tools to succeed, with a quicker ramp-up than if you were an independent business owner. That shorter time to opening can prove to be valuable since it means you will also speed up the time it takes to become operational and profitable.
The proven business franchise system you receive from the franchisor arms you with essential tools for success, including:
- Education about management, operations and marketing,
- Access to necessary equipment, supplies and an advertising plan,
- A network of peers or fellow franchisees who can provide advice and moral support through a company intranet, annual conferences and franchisee associations.
Often franchisees can enter a franchise agreement with little to no experience, although business acumen is always advantageous. Many franchisors also offer ongoing training opportunities so franchisees can benefit from new developments and innovations in the industry. When problems arise, the franchisee has access to technical support and qualified industry experts who can give advice.
Franchising provides collective buying power from the franchisor, meaning you will likely pay less for supplies and equipment than if you were a sole proprietor. Lower costs through group purchasing provide deep discounts for bulk purchasing for the many franchise locations.
Brand Recognition and Customer Base
As a franchisee, you benefit from the brand-name recognition of your franchisor. Often, when you open your franchise location, you have a built-in customer base, thanks to the reputation and expectation of standards of the brand. Building a customer base from the ground up, as you would with a startup, can be costly and time-consuming and can make or break a new business. Having that head start from the franchisor is very beneficial.
Thanks to national and regional advertising campaigns, when you open your franchise location, many customers are already familiar with the brand, giving you an advantage over the competition. The franchisor usually has an established efficient lead generation system through website marketing and other channels. The corporate offices of franchises often perform market research, which leads to better targeting and more effective ads. As a franchisee, having an effective way to promote yourself through established marketing is integral to your success.
In Business for Yourself but Not by Yourself
One of the biggest benefits of franchising is being your own boss, with the safety net of a franchise behind you. Owning a business is hard work, whether you are a sole proprietor or franchisee. However, a franchise provides the benefit of business ownership with tools in place to provide a better opportunity for success.
Benefits of Franchising with RSVP
If you are looking for a successful home-based franchise providing a great work-life balance, RSVP Direct Mail Advertising may be the right franchise for you. RSVP is a B2B direct mail marketing franchise with no weekends required, minimal equipment or inventory needed, and a historical average of 80% of your client base supplying you with recurring revenue.
RSVP franchisees work with local and national businesses providing a turnkey process for design, production, and mailing targeted at affluent clientele. For over 35 years, RSVP Direct Mail Advertising has driven qualified leads to advertisers with our proven franchise model.
Our business model is simple:
- RSVP attracts affluent buyers to local businesses that advertise through us.
- Through our direct mail marketing solutions, we put their brand in the hands of affluent homeowners.
If you’d like to learn more about the advantages of franchising or how to buy a franchise opportunity, then contact RSVP Direct Mail Advertising today.