Should you consider business ownership as an alternative to a job?

With unemployment above 10% in many states, millions are out of work. Many of those who have jobs have experienced pay cuts or reduced hours. For many, the goal has always been a steady income, knowing they would receive a paycheck at the end of the week. Having a job doesn’t have the security it once did. Is there another form of financial security?

Every year thousands of successful entrepreneurs seek financial success in franchising.

In multi-year studies by the US Chamber of Commerce and the Small Business Administration, only 38% of independent businesses survive their first few years of operation. However, those same studies showed that 97% of franchises are still open after 5 years, and 87% are still original owners.

Many employees do not believe that there is a 97% chance that they will keep their job for the next 6 months.

There are several reasons why franchises are so successful.

First, the franchise provides a proven business model, including a business plan, marketing strategy and operating systems. It’s like starting a business with a business partner who has 20 years of experience in the industry, starting from scratch and learning the ropes through their own mistakes. In many small businesses, one mistake can shut the company down. The franchise protects new entrepreneurs from those mistakes.

Second, the franchisor provides ongoing training and support. Most people don’t know what they don’t know. The franchisor trains the new franchisee on everything he needs to know to run a successful business. They are then available for ongoing support when a franchisee has a question or needs help with a problem. Franchisors have legal departments, accounting departments, graphic designers, marketing departments, and operations experts ready to provide default support or help the franchisee with specific problems. It would cost a person starting a business a fortune to have all those professionals hired, but it would be suicide to start a business without them.

Third, the franchise provides brand recognition and a national presence. Consumers are attracted to the brand. Generic products are almost always cheaper, but people spend more on brand name products because they know what they are buying. McDonald’s is not the most successful hamburger restaurant because it serves the best hamburger. It’s because McDonald’s has a recognizable brand that people can identify with.

Four, you get an exit strategy. When a mom and dad go bankrupt, they close their doors. When a franchisee is ready to retire to the Bahamas, he calls the franchisor who already has a marketing team to talk to people looking to buy a territory. Mature franchises have people on waiting lists ready to buy the next available franchise.

The franchise is the most successful business model in the country. Currently, one in twelve businesses in the US is a franchise. Franchises represent 42% of total retail sales in the country. Franchises employ one in seven American adults. A Franchise Times survey indicated that 87% of franchisees were satisfied with their franchise experience and 90% of respondents recommended franchise ownership.