What do millionaires do with their money? How does one get to the stage where he/she can embark on a guilt-free shopping spree or travel anywhere? Here's the truth, a rich person hardly does any of these things! No matter how much money a person makes, if they were to spend carelessly, they would eventually run out of money!
So the real question is, what makes a person rich, and how does that person stay rich? Here's the answer - a wealthy person does not let his money sit idle like in a savings account.
How many millionaires do you know who have become wealthy by investing in savings accounts?
Millionaires make their money work for them. The easiest and fastest way to do that is by having multiple income streams. This way, you will always have money coming in, and you can use this influx of cash to invest in something else like stocks or properties. So, with the topic of this blog being why investing in a franchise is a good option, let's find out!
It's a Proven System
Buying a franchise means buying an existing system - in short, you are buying a business model that is working and already in place. Inheriting a method that works means you don't have to worry about setting up the business. McDonald's is a great example of this fact. You will already have the expertise you need to make the business work. All you have to do is operate to the franchisor's brand standards.
Recognized Corporate Image and Brand Awareness
When you buy into an established business, you buy the corporate image and brand awareness that is already recognized. This works in your favor because customers are usually more comfortable purchasing or availing the services of a company they are familiar with. Furthermore, the franchisor will continue to improve their brand's image, which will directly help increase the traffic into your business.
Higher Probability of Success
Purchasing a franchise is not the same as starting a small business. There is a higher chance of success because an established system is already in place. If you invest in a proven franchise opportunity and adhere to the system established by the franchisor, you should be well on your way to running a profitable business.
Because franchises already have a solid reputation, lenders are typically very comfortable funding the acquisition of a franchise. Financial institutions typically regard successful franchise chains as having a lower risk of repayment default and are more likely to lend money on that basis. Besides that, some franchise systems offer in-house financing or leasing options.
Most franchise companies provide a training program at their corporate offices, as well as additional training at the franchise location before the grand opening. The franchisor will prepare you to operate your franchise in the same manner as their other franchised locations. It will ensure that you are running your business efficiently and will aid in the elimination of any common mistakes that a new business owner is liable to make.
Another advantage of buying a franchise is that you will have the constant support of the franchisor and the guarantee of knowing that you are part of a growing system. When in doubt, you know you can always turn to the franchisor or even other franchisees. What's more, most franchisors will periodically send experts to your location to help with coaching and consulting.
No business in this day and age can thrive without proper marketing, especially online. Franchisors usually take care of handling the marketing and will also supply content and graphics, which can be utilized as marketing material. This certainly helps, especially during the initial phase of establishing your business.
Own Your Territory
Buying a franchise gives you exclusive rights to the location. The franchisor will ensure no direct competition under their name will be able to set up shop near you. You will be entitled to a certain area, which saves a lot of time and energy regarding fighting away competitors.
Higher Exit Value
Due to any reasons, if you wish to discontinue your association with the franchisor, you will have the option of transferring your business to a new buyer. During such a scenario, the exit value of your business will generally be higher than an identical independent business. However, this is only the case if you are a franchisee of a well-known, well-managed, and well-regarded franchise system.
In conclusion, buying an existing franchise with a well-designed system eliminates a lot of risks and has more positives than negatives. At the same time, you definitely need to do your homework and due diligence. You will have to factor in their break-even period, rate of return and its profitability, and most importantly, your level of interest in the business.
Aliens Tattoo is actively looking for franchise partners. If you believe you have what it takes to run your own studio, let's get in touch!