If you’re passionate about a particular industry or have a specific skill set, chances are you would have considered going into business for yourself. And you wouldn’t be alone. Thousands of people wonder every day what they would need to do to take the leap and go out on their own.
The one thing that holds many of them back is the competition. The question of ‘how could I ever compete’ is often hard to answer.
How will you stand out?
It’s the same for virtually all competitive industries, but let’s take the beauty industry for example. The sheer volume of beauty chains makes it very hard for a local ‘Jane’s Beauty Salon’ to get any reach beyond the suburb it’s in.
Let’s use Jane as an example. Her years of experience in beauty therapy have not only made her technically proficient, but she has also identified that customer service is just as, if not more important than the treatment itself. So, if she did want to open ‘Jane’s Beauty Salon’, she knows her unique value proposition is solid.
While this value proposition will be effective in retaining her clients, she may find it difficult to gain new clients, particularly via online channels due to the dominance of a competitor, who is in a franchise. With search engines comparing her $1,500 website against the franchise’s $50,000 website that drives 40,000 new visitors every month, Jane will find it hard to be seen online.
Address the barriers
Jane’s passion for wanting to open her own salon isn’t going to go away just because of this barrier, but it definitely need to be addressed. One option is to make a heavy investment in getting some digital expertise on her side. Another option could be to take that investment straight to the competitor franchise.
Because if you can’t beat them, join them!
Franchising is often misunderstood. They’re often seen as a huge conglomerate with endless cash supply and an offensively large database when in fact, the franchisees who own the stores are small business owners just like Jane. The only difference is they’re not going at it alone.
By joining a franchise, Jane will be able to leverage the group’s website and gain new clients, while she’s busy training staff and performing treatments. Along with the obvious marketing advantages, she‘ll also be able to experience benefits associated with the group’s buying power, so consumable expenses are competitively priced and delivery is streamlined. She’ll also be supported by head office in areas that she isn’t strong in, such as budgeting and managing her profit and loss.
So before you take the plunge and brave the business world on your own, it’s worthwhile looking at how a franchise business structure could help you fulfil your passion and beat the competition.
Keep reading to find out the Top 10 reasons to buy a franchise.
Tags: Franchising, Buying a franchise, Buying a business, Finding the right business, franchise, being your own boss