More than 60% of small to medium businesses close down after only two to three years in operation, according to the Australian Bureau of Statistics. — This is a terrifying statistic for Australians who want to start their own businesses. And as with any business start-up, there are always risks involved, no matter how confident you may feel about your product.
So, is there a sure way of becoming successful? The straight-up answer is “no”. However, there is good news. Going into a franchise industry and becoming a franchisee of a successful, well-known company holds a significantly lower risk than other kinds of start-ups.
Here are FIVE REASONS why a franchise is the way to go:
1. Risk Mitigation
Choosing to buy a franchise limits the risks involved since the financial statements and records are available to you to study before you make an educated risk and delve into a business operation on your own. Having these papers to study is essential and highly beneficial. Starting your own company means no previous studies or records on the state of affairs. Experimax is a franchise in Australia and by using this strategy of risk mitigation we’ve seen great success compared with the many failing start-ups across the country.
2. Trusted Brand
Nothing makes a customer buy quicker than the element of trust. Trust is so important when it comes to human nature. If the brand is well-known and is of good repute, customers will tend to buy more from such a brand than from a new start up. That’s why buying into a franchise like Experimax, is the smoothest way to ensure you have a ready supply of customers who know your brand already.
3. Set-up Assistance
When you start your own business, you have no support except that of your own hard work. But with a franchise, your own efforts are much less, and supported by our already successful business model and infrastructure. The entire set-up of shop is completely supported, from the smallest element of business to the signage and the attainment of stock. There is also ongoing training and support available so that you, as a franchisee, can feel confident going forward. Experimax Franchise can afford such support since, as a franchisee themselves, they know the value this brings to a business and the chance it gives that business of success.
4. Business Forecast
It is impossible to have a business forecast if your business is a start-up. Of course, good business people will endeavour to forecast profits to the best of their abilities and experience, but, as the study has shown, almost two-thirds of all Australian start-ups shut down in fewer than two or three years. — However, and this is important to note, buying into a franchise offers you a business forecast upon which you can rely more readily. The facts and figures will speak for themselves, and with such graphs, you can be your own forecaster of what your business, as a new franchisee, will deliver.
Staff are people. And with people come particular issues every business must face, irrespective of it being a franchise or a start-up. However, buying into a franchise has the unique benefit of understanding the type of staff you will employ, which will give you a head-start with regard to your management style. Moreover, and more importantly, as a franchisee you will have the chance to receive referrals, transfers and advice from the franchise itself. This makes finding the right people, with the right qualifications, easier and far more streamlined than any start-up business.
Generally, setting up a business, as mentioned, is typically a stressful endeavour, and the many aspects of which you may not have considered before engaging in starting your own business will indubitably crop up—things such as payroll management, procurement, taxes, stock management, warehouse liaising, etc., etc. For this reason, since we are a franchisee also, we at Experimax strongly recommend procuring a franchise. If you want some advice, visit our website.