George Cohon, renowned businessman and founder of...
People decide to go into business for themselves for many reasons, possibly because they don’t enjoy their current work or they are feeling dissatisfied with the direction their life is currently headed; surely to build financial wealth and to have more family time - but as we know, going into business for yourself presents a certain amount of risk. That risk can be lessened by purchasing a franchise.
Purchasing a franchise allows you to build your own company but you are doing it on the framework of an established business idea, giving you stability and security. In most cases, there isn’t even a lot of research needed as there should be training and marketing plans in place for you to follow.
The beauty of the franchise system is that you have all the benefits of being a business owner, but you will be using a system that has already proven successful. In fact, 92 per cent* of new franchises pass the critical first five years (*Canadian Business Franchise - January 2014) – a rate nearly four times higher than that of independent businesses. This is because someone else has done all the groundwork, learned from their mistakes and developed a business idea that works, and works so well, that they have been able to build a franchise empire upon that plan.
Part of the reason franchises get more business than an independent is due to brand recognition.Franchisors have spent big money getting their brand noticed. People see the brand, recognize it and make the association that this is a company that can be trusted to provide the service they require. This is the reason franchises have a set of guidelines and business practices that must be followed. If all franchisees aren’t offering the same level of service, the brand suffers. So, even though you will essentially, ‘Be your own boss’ you will still have franchise rules that you must adhere to.
If you are the type of person who is a team player and is willing to listen to the guidance and advice of someone who has many years of business behind him, you can be very successful. However, if you are the type who feels they need to be in charge and are not good at taking advice, a franchise may not be for you. Franchisors require their franchisees to follow their business plans to maintain the integrity of the franchise. Franchises are successful because the business practice that you will be expected to follow, has taken years to perfect and has been proven successful in many different locations.
However, this doesn’t mean that you can’t have some of your own ideas. Some franchises, such as ours - encourages franchisees to make suggestions or develop ideas they can bring to head office for review. Working together benefits the company as a whole.