Why Are Other People Opening Franchises? And Why Should I?
Since the mid 90’s the number of small businesses in the US has been growing - and fast! It makes sense why - it gives you an opportunity to do something more interesting, to have more flexibility, and to be your own boss. Beyond just small businesses in general, franchises have been seeing particularly strong growth in the post-recession period. Franchises have grown to represent more than 4% of all businesses in the US and account for nearly 50% of all retail sales. So with more than 900,000 franchise businesses in the US we were wondering if we were right about why people are opening franchises? Is it for the flexibility? For the career change? For the freedom of being your own boss? Or for some other reason all together?
Over the past eight months we’ve been running a quiz to try to match people with the best franchise for them. One of the questions we’ve asked everyone is why do they want to open a franchise. We went back to the data from April and May to try to figure out what is driving people to open franchises. In the end the data was pretty clear cut and there was only one winner. As we initially speculated some people open franchises because they want more flexibility, or they want a more satisfying career, but neither of those are the primary reason for most people. The number one factor is that most people want to open a franchise to make money. More than 50% of the quiz takers reported that money was their primary consideration when it came to opening a franchise.
This came as a little bit of a surprise to me.but at the end of the day it makes sense. Franchises might be a good opportunity for people to make a change in their lives, but at the end of the day they are a major investment. And as with all major investments you’re probably making it with the intention of making money. So if you are thinking of opening your own franchise to make more money, have more flexibility, or have a more fulfilling career you’re not alone.
Interested in opening your own business? Try out our quiz for yourself and find your perfect franchise opportunity today!
New Study – Why People Who Run Franchises Are Happier
For more and more people, Sunday no longer feels like the weekend.
Don't Write a Business Plan
I've started and successfully harvested businesses. I've taught entrepreneurship for almost 20 years. As a part of my teaching and research I've written books and texts on how to write a business plan. I've read almost a thousand of them. Now I believe franchise companies can think differently about business plans.
Why Should I Open a Franchise Rather Than Open My Own Business?
America has always been the land of free enterprise, and the prospect of self- employment may sound like a dream come true. Imagine the schedule flexibility, the freedom to explore and expand while pursuing an interesting career. The alleyways of entrepreneurship are so vast that it can be rather daunting to entertain. What is the right business for today? What product is in demand? Which business model is most profitable? What concept is most likely to succeed? Potential owners also must consider that franchising may be a better option than small business start ups. Yes, when entrepreneurship meets franchising, the parameters change. There may still be freedom, but new franchisees find themselves absorbed into a preset business model with a tried and true support system.