November 26, 2020

3 Ways That Converting To A Franchise Could Protect Your Business

Owning your own business is the dream of many an entrepreneur, but with all the potential glory comes the potential to fail. In fact, according to the U.S. Bureau of Labor Statistics, about 20% of small businesses in the U.S. fail within the first year and almost 50% have closed by the fifth year. 

During the pandemic, many small businesses have closed or are facing closure due to loss of business. But those that are part of a larger franchise brand may benefit from having the insulation and safety associated with a major national business. If you have ever thought about converting to a franchise business, now might be a good time to seriously consider that option. 

Here are three ways converting to a franchise can help protect your business: 

  1. As an independent business owner, your business relies on you to be involved in every aspect of it, sometimes leaving little time for anything else. As part of a franchise, the business aspect is already in place and processes have been fine-tuned, making it less dependent on you to be there 100% of the time. The franchise assists its owners with technology, marketing, advertising, operational protocols and crisis management plans in place for situations like an emergency or pandemic. A franchise also has experts to deal with government inspections and regulations compliance. 
  2. You’ll get the benefit of national advertising and brand name recognition. Not only that, a local franchise naturally profits from the brand’s national alliances and business partnerships, acquiring new business and clientele just by being a part of the overall franchise brand. 
  3. By converting to a franchise, your business could lower its costs by taking advantage of the power of volume purchasing the national franchise enjoys. Instead of buying your goods at a single-purchaser (and much higher) price, think of the savings you could experience being part of a national brand.  

While the benefits of being part of a franchise family are enticing, there are some questions you should ask before taking a leap of faith. Will your expenses decrease and will potential business increase? Planning for the changeover will be intense, with logo changes, signage, website revisions and new technology to learn. To get a better idea of the process, it’s always a good idea to chat with others who have converted their businesses to franchises and learn about their experiences. 

If you decide to pull the trigger on a conversion, then the excitement starts. Once done, it will be time to contact all your previous customers with the great news, and let the community know about your new brand as a new and exciting chapter for your business to be reborn and grow!

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