Is Franchising Right For You? Here’s What You Need to Know

Being your own boss can be a great idea for a lot of people, but you have to be driven, motivated, and energetic, and you have to find the right place to start. One of the best ways to become your own boss quickly and with the least risk is to open a franchise of an existing business.

The reason that this can be very successful is that franchises are businesses that already have proven that they can turn a profit in many different areas of the company. In fact, 9 out of 10 franchises report profitability after just two years of operation, while 50% – that’s half – of independent businesses close within their first two years of operation.

But there are a lot of franchise types out there, from food and drinks to automotive services to consultancy services. Essentially, you should choose the franchise area in which you have the most area of expertise and about which you are most passionate, but you have to take into account the cost of opening a franchise and the local markets as well.

Additionally, since franchises are so reliable, it’s much easier to get bank loans and government start up grants for franchises than other businesses – but you will still need to provide at least one third of the investment from your own funds.

Thanks to Reed Commercial for creating this infographic.