Benefits of buying a franchise
Franchised businesses offer a structure for launching, operating and growing a business. Franchisors create comprehensive operations manuals and training programs for their franchisees that cover marketing, operations, accounting, technology and other areas that are specific to the particular business model.
These efficiencies are designed to enable franchise owners to earn more and spend less time and effort than otherwise would be required to open and operate a similar business on their own.
The franchised business model offers the franchisee the ability to grow under a common brand and share in the benefits of a like-minded group of business owners. Though each business is independently owned and managed, all franchisees share in the collaborative benefits of the organisation through the support and oversight of the franchisor including:
The amount of money it takes to get a new business off the ground can be extraordinarily high.
This is partly due to the fact that new business owners have to spend a lot of money on marketing their business to attract customers. It can be difficult to accurately estimate how expensive marketing will be, which can leave new business owners out of money and out of luck only a few months into their new business venture. Most franchises will provide a basic outline of what you can expect the costs to be, so you know exactly what you are getting into when it comes to buying a franchise vs starting a business.
Home Caring offers an excellent opportunity for a prospective franchisee to form a joint venture with the Franchisor to invest in and operate the franchised business. This will significantly reduce the investment required by the franchisee, who will also benefit from being paid a salary.
If you don’t have education or experience in business, then starting your own business can be a challenge. You won’t know how to create an effective business plan, which will make you more likely to fail. This experience and expertise isn’t needed with a franchise because you’ll receive extensive training. Franchises provide training courses as well as on-location training to ensure that you are ready to run your franchise effectively.
Home Caring offers a range of operational support, including regular location visits to share best practice and assist with the growth of each office, customer survey feedback, business planning templates, regular franchisee meetings and annual conferences.
When starting a business from the ground up, there’s a good chance that you’ll go through a lot of trial and error, whether it’s working out the best way to set up your business or how to most effectively market your services. Unfortunately, some of the errors during this process could sink a small business. With a franchise, all of this has been considered and resolved. You simply follow the guidelines and avoid unnecessary trial and error.
There are no definitive statistics to prove that franchised businesses are more successful than independents, though those which are available suggest that this is the case. For example, slightly fewer than half of all new small businesses that opened in Australia in 2009/10 were still operating three years later while the average tenure of a franchised business is seven years.
It will be much easier and less expensive to attract customers with a brand that is already established. You’ll also benefit from any national advertising campaigns that your franchisor is running. New businesses have to build their brand from the ground up and this takes time.
You will have exclusive use of the “Home Caring” and “Dementia Caring” brands, which has already received market recognition and goodwill. Advertising and marketing templates are supplied for your local marketing activity to support the national program.
These three elements are important for a variety of reasons and seem to be common denominators when people seek a new business as a career path. Flexibility has always been a hot button for entrepreneurs who exchange the stability of a “real job” for the freedom that comes with being their own boss. Money, or income, is always a factor but surprisingly is seldom the most important. We know many people who have left huge salaries behind because they were miserable, to pursue the Australian Dream and launch a business. Status is an all-encompassing category that includes not only titles and position, but more important, the feeling of purpose one has and being a part of something significant.
Owning a franchise can provide you with all three of these elements if you operate the business successfully and manage your time and resources properly.
As a rule, if you love what you do, you can’t help but succeed. If you can align yourself with a franchise that really fits, you’ll be much happier, which in turn results in greater productivity. This is a simple philosophy that’s often overlooked. Some franchise organisations have suffered because they lost sight of this reality during the fast growth stages.
Sometimes franchisors are so successful and grow so fast that they seemingly forget about the little things that made them successful in the first place.
A franchise organisation that forgets that their franchisee community is in fact their “customer” base (each of whom should be treated with respect and with an eye towards making them satisfied) usually comes down like a house of cards.
When the franchisor understands that its franchisees are the heart and soul of their success and understand a very basic premise — if the franchisees are happy then they’ll generate more revenue — then it will build on that reputation and financial model. But if the franchisor sees its franchisees merely as cogs in a wheel that deserve no respect, the system ultimately fails.
In a joint venture model, the franchisor will always have a shared interest in the business and encourage and support growth opportunities.