When thinking about starting a business, it’s important to weigh out whether you should be starting your own independent start-up or go with a small business franchise opportunity. Perhaps you’re not quite sure what you want to do yet. Or maybe you’re not sure what the difference between the two options may be. In this article we will highlight why it’s better to pursue some of the best franchises rather than an independent start up.
In case you aren’t aware, small business franchises are associated with an established brand name company. The way it works is that a franchise owner would purchase rights from the main brand name company in order to be legally primed to open and operate a business under the main brand name’s banner. Consumers are much more likely to frequent a business that they recognize over one that they’ve never heard of before. The brand association is powerful in that it has a built in level of quality that customers are familiar with and therefore will be far more likely to spend their money at.
Matter of fact, FranNet, a national network of franchise consultants, released a detailed survey of the success and failure rates of franchise businesses across the United States. In the survey it showed that out of 1260 franchise businesses, 91% of the franchises were still in business two years from when they opened their doors. With that said, an astonishing 85% of franchise businesses that were still open at the 2-year mark were still open come their 4th birthday.
It’s safe to say that opening a franchise business is a smart, safe, and stable way to go. But before we make the judgment call let’s take a look at independent start-ups.
Independent start-ups have a much harder time picking up business due to the fact that they are not associated with a larger brand name. So, it’s no surprise that according to the U.S. Bureau of Labor Statistics and the U.S. Small Business Administration (SBA), about 70% of all independent start-up businesses remain in business after the 2-year mark, and of those survivors only 50% were still open upon reaching their 5 year anniversary.
There’s no doubt that franchise businesses are a great direction for business owners to go toward. After all, Franchise businesses have shown a high growth rate in the number of employees than among other businesses. They also have lower start-up costs than independent businesses. And to top it off, franchises are also seen as less risky investments than most other business ventures, due to the resources that are made available to franchise owners via the main brand name. It’s to any aspiring business owner’s benefit to learn how to start a franchise business today.
Founded in 1996 by Michael Newman, Always Best Care specializes in non-medical in-home care, assisted living placement services and skilled home health care. Driven by dedication and compassion, Always Best Care has grown to become one of the most beloved non-medical senior care facilitators across the country. With so much growth, and success, Franchise Always Best Care was brought about in order to share such fulfillment with many other business owners and communities.