Opportunity is knocking
Are you looking for a unique way to break into the world of business ownership? Becoming a franchisee could be a wonderful opportunity, but a lot of prospective entrepreneurs discount the idea if they’ve bought into the many myths surrounding owning a franchise. Perhaps they believe that a franchise will stifle their entrepreneurial creativity, or that they can’t enter an industry they are unfamiliar with. Don’t be fooled – franchising can afford you many opportunities.
4 myths you need to ignore
As an entrepreneur, you’ve probably already reached the conclusion that people speak on a lot of topics they have no authority discussing. What you’ll find is that those who speak extensively about the negatives of franchising are typically the same people who have never given it a shot. What does that say about the validity of their claims?
Franchising isn’t for everyone. However, it’s an opportunity that should be considered more than it is. In an effort to clear the air regarding business franchising, here are some common myths and reasons why you shouldn’t believe them.
1. Profit margins are slim
When you buy into a franchise, you’re obviously working under the umbrella of a corporate entity. This means you’ll likely be required to pay royalties or monthly fees to the franchisor. Because of this, there’s a misconception that profit margins are extremely small for the franchisee.
While there are situations in which profit margins are low, this is rarely tied to the royalties and fees paid by a franchisee. There is still plenty of room to remain in the black. Consider the royalties and fees part of your overhead costs and you’ll see things much more clearly.
2. There’s no room for creativity
Franchising detractors like to say that buying into a franchise causes you to lose your individuality. Once again, this is false.
While the buildings, colors, logos, and product offerings may look the same from franchise to franchise, that doesn’t mean the franchise owner has no say in what’s happening. There are plenty of opportunities to test new products, implement new processes, and try new things.
Did you know that the idea for McDonald’s Egg McMuffin actually came from a single franchise owner? While you may have to ask for permission on certain fronts, many franchisors are willing to extend freedom to franchisees that they know and trust.
3. It’s too expensive to get started
Many people are under the assumption that it’s too expensive to buy into a franchise. The reality is that many franchises can be started and established for under $100,000. Some can be started for as low as $10,000-$15,000.
The SBA also looks highly upon franchises because they have a reputable name and model. As such, loans are given more freely to those interested in investing in a franchise.
4. There’s very little freedom and flexibility
The fourth myth you’ll commonly hear is that there’s no freedom or flexibility in being a franchise owner. People say you never have any time for your personal life or family. This doesn’t have to be true. While you can put as much time into your business as you want, you also have the option to hire managers and employees who can assume the time-consuming responsibilities for you.
Do your own research
If you listened to everything everyone told you, you’d probably be too paralyzed to ever make a move. In the business world, the advice you receive is only as good as the person giving the advice. Whenever you hear a claim, it’s up to you to research the validity of it and verify the truth behind the statement.
The myths mentioned in this article are commonly circulated in entrepreneurial circles, yet have very little truth. Do your own research and don’t be afraid of unpacking the truth!