Are you considering buying a franchise? If you're someone with spare cash or you’re eager to invest in an already established industry, a franchise is a reasonable venture to go for.
Rather than trying to figure out how to start a business and how to successfully market one, all you have to do is adopt the franchise’s concept and follow its guidelines.
There are indeed advantages to operating a franchise compared to starting a business from scratch. Still, those advantages don’t imply a franchise is a guaranteed success. Sometimes, you need franchise SEO to help your branch gain traction within the local community.
The reality of making a franchise work is harder than you think. In this article, we will discuss the pros and cons of operating a franchise and the five truths you need to know before becoming a franchisee.
Advantages of Becoming a Franchisee
Disadvantages of Becoming a Franchisee
Being a franchise owner is no walk in the park. Here are the five truths about being a franchisee you need to be aware of.
If you’re thinking about buying a franchise because it’s the easy route to success, think again. Just like any other business, owning a franchise requires hard work.
Although you don't have to put in as much effort in marketing a franchised business because brand awareness is a given, this doesn't automatically equate to success. You need to be driven and dedicated to running a franchise. It can also take years before you start seeing a return on investment.
If you don't involve yourself in running your franchised business, especially at the beginning, you won't know how things work. Your employees can easily trick you; you can’t find ways to make processes and your staff more efficient, and you won’t know what improvements to make to help your franchise succeed.
Another common misconception about operating a franchise is that the customers and profit will automatically start flowing. Sorry to disappoint you, but on average, it takes a year or two before a branch becomes profitable.
Before buying a franchise, develop a business plan to help you set expectations about when you are likely to begin earning a profit.
A business plan will detail your goals, operations, marketing objectives, and financial projections. Pay special attention to your forecasted cash flow and breakeven point.
You should also have working capital to help you cover the costs of running your franchise until it can fund all its expenses. Additional working capital may also be necessary to support your business through ups and downs.
One of the disadvantages of operating a franchise is that aside from the initial franchise fee, you will be paying ongoing fees.
These regular payments are your contribution to a centralized marketing system. It’s meant to cover the costs of your franchisor’s nationwide marketing campaigns.
Although marketing at the brand level can provide a significant advantage to the brand overall, it doesn’t necessarily raise awareness to your specific branch.
To get more customers and become one of the successful franchisees, you will need to promote your branch in your area through local franchise SEO.
Local franchise SEO is focused on improving the visibility of your branch in the search results. But, why exactly is it so crucial to appear there?
When your branch ranks high in the Google search engine results pages (SERPs), more people will see your business as reliable and recommended by Google.
It also increases your business’ ability to generate leads and traffic, even if you don’t have a website.
Yep, even without a website, your branch can still rank on Google. How? By enlisting and claiming your business on Google My Business and Maps!
So, aside from running branch-specific discounts and social media contests, make sure you invest in franchise SEO too!
Even though you’re the boss in your branch and are responsible for the running and profitability of the business, the franchisor is still the ultimate boss. He or she has absolute control over your business.
If you struggle accepting this and want freedom in running your business, the franchise model may not be right for you.
The most successful franchises are branches that comply and remain consistent with the brand.
Despite all the struggle, operating a franchise will soon grow on you, and you will love it!
When you start seeing more customers patronize your branch, you will discover that the franchise model gives you the flexibility that other business ventures cannot.
Once everything is set in your business, you can delegate managing your branch to someone you trust. You now have the freedom to expand, invest in another franchise, or retire.
What’s amazing about being a franchisee is that you will acquire skills that will help you become a better, more knowledgeable and stronger entrepreneur!
You will soon discover that this is something you're passionate about. Your enthusiasm for entrepreneurship can be infectious, and you can use this to inspire others to embark on the same journey you did – take a risk and start a business.
Are you interested in operating a franchise? Develop a franchise SEO strategy to drive more traffic and generate leads to your branch! This way, you can make more sales and become profitable faster.
The life of a franchisee is not a bed of roses but seeing your hard work come to fruition makes it worth it.
At Digital Resource, our franchise SEO specialists and digital marketing experts will work with you to create a custom digital marketing plan that will put your branch ahead of your competitors.
Want to secure more customers online? Contact us today!