An entrepreneur is defined as someone who takes a greater financial risk than normal to achieve success.
Entrepreneurs like Ford, Carnegie, and Rockefeller constantly looked for ways to revolutionize the system, provide jobs to thousands, and make a lot of money in the process. Similarly, thousands of entrepreneurs view the franchise model as a viable alternative to independent business ownership.
Entrepreneurs franchise for many reasons, including as a means to tap into an established brand, huge customer-base, and valuable management oversight. When an entrepreneur franchises, they often find the road to profit a much easier and expedited route. The truth is, franchising is often much easier than starting a business from scratch. Find out all you need to know about why franchising is an easier option below!
How Entrepreneurs Grow Their Business Through Franchising
Whether it’s McDonald’s, KFC, or Firestone, many of the largest companies in the world are actually franchises. Franchising offers a much faster way for companies to expand their foothold – but why?
When considering growing a business, entrepreneurs may feel some apprehension at the costs involved. After all, more locations, equipment, and a larger work force means higher costs. For entrepreneurs that do not have access to millions of dollars in capital, franchising offers the perfect solution.
In the franchise model, entrepreneurs rely on franchisees to float the capital needed. This means that the franchisee assumes the risk of an unsuccessful location and it also means that the franchisor can avoid the hassle of applying for loans. Therefore, an entrepreneur can establish a large amount of franchised locations around the region, state, or nation for a much lower cost. This also means that entrepreneurs can focus their capital on actually improving their brand through new equipment, top executives, or even new franchise designs.
A Strong Management Team
Regardless of whether an entrepreneur’s business is franchised or not, they will need to cede some control over eventually. As you now know, entrepreneurs can grow their business faster because franchisees must put up the capital required to own a franchise. Yet, this also means that franchisees will be more inclined to manage their location very closely and follow the rules of the franchise very closely.
After all, no one wants to lose money on an investment, especially an investment worth hundreds of thousands of dollars. Franchisees will do whatever it takes to ensure that their location succeeds. Alternatively, managers who do not have any “skin in the game” may be more inclined to cut corners or not hit company goals.
As such, franchising is a win-win business model for both the franchisor and franchisee. When the franchisee succeeds, so does the franchisor.
The 3 Best Tips for Entrepreneurs Who Want to Franchise
One of the best ways to find success as an entrepreneur is to emulate someone who has already found success. Many of the greatest entrepreneurs throughout history followed these three tips to achieve greatness. Like every other would-be entrepreneur, innovators like Edison, Jobs, and Zuckerberg started out with a dream, worked countless years, and never gave up.
After asking yourself some key questions, here’s how you can achieve your own dreams as a franchise owner!
Seek Out Failure, Don’t Avoid It
There is not a single entrepreneur in the world who actively looks to fail. Yet, the truth is that failure often leads to great success. Jeff Bezos, the founder of Amazon and richest man in the world, risked his family’s and friend’s $300,000 investment in his fledgling company in order to expand. Bezos knew he would regret never going for his dream more than failing as an entrepreneur.
Throughout his almost 30 years as the head of Amazon, Bezos has carried the company to incredible heights, but not without some massive failures as well. Amazon’s Fire Phone was a $140 million failure and its acquisition of Pets.com proved to be another $100 million flop as well. For Bezos, failure taught him how to become a better investor, better leader, and a more humble person overall.
Never Stop Learning
Success for an entrepreneur can be a bittersweet pill. On the one hand, entrepreneurs may see a huge financial, emotional, and spiritual gain from their years of hard work. However, success can bring on a serious bout of complacency. Entrepreneurs may become comfortable with their standard of living and fail to keep up with industry trends, new technology, or new teachings. The best entrepreneurs are typically those who never stop learning and never become comfortable with complacency.
A founding father of the United States, Ben Franklin never quenched his thirst for knowledge even though he found success early on in his life. As a young entrepreneur, Franklin co-founded a small newspaper company in South Carolina, often considered the first American franchise. Franklin is also credited with inventing the bifocals, lightning rod, and many other everyday items that we could not live without. It was this thirst for knowledge that made Franklin a legendary entrepreneur.
Never Be Afraid to Ask For Help
Entrepreneurs may feel too proud to ask for help or embarrassed at the prospect of not knowing something that others may find rudimentary. Facebook founder Mark Zuckerberg was just a college student with a dream when he asked Steve Jobs for help. Jobs’ advice on how Zuckerberg could surround himself with a team of motivated people proved invaluable for the entrepreneur who is now worth billions.
When Zuckerberg experienced set-backs during the early days of Facebook, Jobs recommended that he go to the same Indian temple that Jobs went to when he found himself at an entrepreneurial crossroad. Zuckerberg stayed in India for a month and took note of how the Indian culture centered around social connectivity. Without Jobs’ help, Mark Zuckerberg may never have fully realized the importance of Facebook, a website that is accessed by billions of people across the globe each day!
What Traits Make a Good Entrepreneur Franchise Owner?
As the history of entrepreneurial success has shown, it doesn’t matter where a person comes from, it only matters what they are made of. There are certain traits that indicate whether an entrepreneur will succeed or fail. Find out what traits make a great entrepreneur and which one’s you may need to work on in order to find a franchise and potentially enjoy success in the business world!
Don’t be the type of entrepreneur who suffers from “paralysis by analysis” The best entrepreneurs are those who can make important and well-reasoned decisions in the shortest amount of time. Entrepreneurs often cannot take their time when making a decision, so be decisive.
Integrity is crucial in the business world. Business owners should always strive to uphold their integrity. Entrepreneurs should operate within ethical bounds whether they are being monitored or not.
Business leaders should always strive to earn the respect of their employees and never feel entitled or above anyone simply because of their rank in the company. If you’re looking to buy a franchise, stay humble, always be honest, and lead by example!
Remember to show enthusiasm in front of your employees. No one wants to work for a company that is not enthusiastic about what they do. Ever see a military officer who acts dour in front of their soldiers? Probably not. Set the standard for your employees and they will motivate themselves.
Check out the rest of the business leader traits all entrepreneurs possess!
How Do Entrepreneurs Gain National Exposure for Their Franchise?
As you know very well by now, entrepreneurs typically grow their business much faster by utilizing the franchise business model. Find out how entrepreneurs actually grow their businesses the franchise way.
A trademark is a type of intellectual property including a particular design, product, or likeness that is uniquely identifiable. Anyone who does not have access to the trademark or is not the owner cannot use the trademark without risking legal action. The use of a trademark from an established corporation can mean the difference between running a successful business and toiling for years on little to no sales. Recognizable trademarks ensure that a built-in customer base will arrive on day one to spend money at your franchise.
There are numerous ways to gain national exposure for your business. Mid to large scale franchises are composed of many franchises across the nation and even the world. As such, these corporations have access to millions of dollars that can be used towards marketing. Franchisees of all levels, whether they own one location or 100, benefit from national television commercials, website ads, push notifications, etc.
Franchises also incorporate promotions at sporting events, sponsor initiatives, athletics tournaments, utilize famous spokespersons and much more. Independent business owners looking to grow their modest business simply do not have the capital necessary to incorporate such expensive marketing campaigns. You may see a local mom and pop store advertise in the town newspaper or run a commercial on basic cable, but does that really compare to your favorite celebrity sinking their teeth into a burger?
img class=”size-large wp-image-29300 aligncenter” src=”https://askmrfranchise.com/wp-content/uploads/2020/07/investing-in-a-franchise-1024×682.jpg” alt=”Pens, coins, and checks from investing in a franchise” width=”696″ height=”464″ />
Now You Know Why Entrepreneurs Choose to Franchise!
Each year, thousands of entrepreneurs seek franchising as a viable alternative to the start up business model. Franchising offers a much faster way for entrepreneurs to expand their business and find a motivated management team. Entrepreneurs often possess the same traits and follow the same tenants of success in order to achieve their dreams.
Ready to become an entrepreneur yourself and see why franchising has been so popular for decades? Find a franchise today and start living your own entrepreneurial dreams!