Starting a business is one of the most rewarding pursuits. With long days and nights developing your concept, meeting potential vendors, raising capital, and adapting to changing circumstances, it requires substantial time and effort to take a business from an idea to reality. Consequently, all business owners understand that the process of building and running a company brings both benefits and challenges.

Franchising provides an accessible path for many individuals to achieve their goal of owning a business while alleviating some of the pressures of building a business entirely from scratch. We’re breaking down the key reasons many investors choose to own businesses through franchising.

The Challenges of Starting a Business from the Ground Up

The first challenge arrives the moment the desire to start a business sets in. At this stage, individuals must identify what industry they will service and the products they will offer. Finding the right direction often requires aspiring business owners to evaluate the market landscape, pinpoint target audiences, identify direct and indirect competition, and determine available markets where their concept will flourish.

Once the concept is finalized, it’s full steam ahead on creating the remainder of the business plan, including mission and values statements, a marketing and sales strategy, and financial projections. It also means setting up other internal structures such as determining the name of the business and its products or services, identifying vendors and suppliers, developing a website, and establishing the bookkeeping process, business bank accounts, and insurance coverage.

When it’s time to bring the business plan into reality, a business owner must then secure the funding for its startup and operating expenses. Personal savings, small business loans, and other investors are only a few of the sources owners can use to raise capital.

Next, a business owner must finalize the legal structure of the business, whether it’ll be a sole proprietorship, a limited liability company, corporation, or partnership. Part of this step involves registering the business with local and state governments as well as securing the proper licenses and permits.

Once all of these t’s have been crossed and i’s dotted, a business owner can then officially launch the business, transitioning the challenges from starting it to maintaining (and growing) it.

The Franchising Fix

For some, the overwhelming demands can crush their dreams of developing a business. At FranSource, we believe these pressures don’t have to be the barrier to fulfilling your life goals. That’s where franchising comes in.

Franchising gives investors the opportunity to operate a business under an existing brand. Franchisees who partner with franchisors gain access to a fully developed business framework. No matter the industry or franchise style, franchisees choosing to invest in well-developed and transparent franchise opportunities are provided all the necessary trademarks, procedures, and technologies for success.

Ground-up businesses require the owner(s) to handle every aspect of development. By contrast, the franchising model offers a “business in a box.” The franchise eliminates many of the tasks associated with starting a business from scratch and gives investors the opportunity to take on the role of a business owner.

By providing the materials for a proven business model, complete with standardized operating procedures, franchisors minimize the risks of trial and error that are commonplace in building businesses from scratch. Once investors become franchisees, they will receive initial and ongoing training to run their locations. Similarly, the franchisor will advise the franchisee through the development, opening, and ongoing operation of the franchise unit.

This ongoing support materializes in several areas, from providing standardized sources of supply (often at discounted prices), proven advertising and marketing programs, technology such as websites and franchise software, storefront designs and layouts, and more.

In return, investors are expected to uphold their commitments to the franchise brand as well as provide the startup funds to facilitate the creation, operation, and promotion of the franchise location. As an added bonus, banks hold an appreciation for the systems made available to franchisees by the franchisor, which also makes it easier and faster for investors to access capital.

All in all, franchising invites a collaborative approach to business ownership. Rather than place the entirety of the risk and pressure associated with developing a business on one individual, the franchise model provides time-tested resources and knowledge to help franchisees feel that they are not alone in developing and running their businesses.

Making Your Franchise Enticing to Investors

The relationship between franchisors and franchisees is unique. Not only are they united in growing their particular franchise brands, but also in their individual roles as business owners. Leveraging this distinct connection will be an important aspect in enticing investors to choose your franchise over others, or even starting a completely new business venture.

As the franchise development specialists, the FranSource team brings more than three decades of experience developing as well as promoting franchise opportunities. Franchise owners looking to grow their businesses must learn how to effectively communicate the advantages of franchising over starting a business from scratch. FranSource can provide franchisors the right tools — including targeted messaging, a franchise opportunities site, established systems, social media promotions, and clear revenue data — to pitch a manageable, scalable, and profitable business opportunity to investors.

FranSource knows successful franchising requires even more than developing a successful franchise framework. Contact us today to build a communications strategy that will entice the right investors to your concept for lasting growth.