For many entrepreneurs, running a franchise is a lot more appealing than starting a business from scratch. Knowing you have a business system that already works, with advertising and marketing included can save you years of time and give you peace of mind that you’re set up for success.
However, the system can’t do everything for you. As an entrepreneur, it’s important to do your research and make informed business decisions if you want your franchise business to grow.
Here’s what you need to consider before buying a franchise.
What is a franchise?
You may have heard the term franchise before, but do you know what a franchise is?
A franchise business lets franchisees sell services while using a franchisor’s business name. Usually, the franchisee also has access to proprietary business knowledge, processes, resources, and trademarks of the franchisor once they pay the franchisor an initial fee as well as licensing fees.
Of course this business model isn’t for everyone. But for many entrepreneurs who have enough capital, having an existing franchise team to support you with set up advice, franchise details, marketing strategy, and advertising materials can help streamline operations and allow you to focus on other areas of your business.
How to decide where to invest
Setting up a new business can be daunting and entrepreneurs who want to open a franchise need to do lots of research before making an initial investment. First, potential franchisees need to decide on a business franchise industry. There are many industries to consider, but the most successful franchise owners are well-informed about their industry, enjoy working with their franchisor, and have passion for the services they are providing.
Types of franchises
Entrepreneurs who are thinking of buying a franchise business have a lot of options. Most companies offering franchise opportunities fall into the following categories:
- Health and fitness
- Fast food
- Hotels and hospitality
- Senior Home care
While we can’t speak to other franchise businesses, Nurse Next Door has been in the senior home care franchise business for 20 years. As a franchisee, when you work with us, you get access to all of the expert company resources and the proven system you need to set you up for business success. Our most successful franchisees strongly believe in our philosophy of Happier Aging and go the extra mile to ensure high-quality medical home care and non medical home care services that help clients stay at home for longer.
As a small business owner, you’ll be responsible for all franchise initial investments, finding a new location, and all pre-sale due diligence such as paying a franchise fee and completing a franchise disclosure document before purchase. This means you should be confident that you’ll make a profit in the franchising business you choose.
What does a successful franchise business owner need to do?
Many entrepreneurs decide to purchase a franchise for the built-in system that franchisors offer. Still, franchise success isn’t guaranteed and businesses should be aware of the costs and risks involved. There are some important details that can make or break your franchise.
Here’s our advice for entrepreneurs who want to open a franchise:
Research your market
Entrepreneurs who want to open a franchise may have the work ethic to make it a success, but before diving in make sure there is a market for your service in your preferred location to ensure sales.
Have enough capital
There is a cost to franchising and as the owner you need to have money and a budget to cover expenses like real estate costs, franchise fees, and opening inventory for at least the first six months of your franchise business—and ideally longer.
Provide an exceptional experience
Business franchises need to maintain a stellar reputation. Entrepreneurs who want to open a franchise company need to invest in high-quality experiences for your new customers. Ask for referrals and follow up with existing customers to ensure they are satisfied with your services.
Can an entrepreneur buy a franchise?
Because franchise owners don’t come up with the original business concept, some people don’t think owning a franchise makes you an entrepreneur. On the other hand, you need a lot of entrepreneurial skills to own a franchise. You are still building and growing a business and will have to face the same challenges and opportunities as business owners who didn’t franchise.
Entrepreneurs who want to open a franchise pay an initial business franchises fee ranging from $50,000 to $5 million depending on the type of franchise they are purchasing.
What are the benefits for entrepreneurs who want to open a franchise?
A successful franchise has many benefits for entrepreneurs. But two of the main advantages of running a business franchise are the fulfillment it gives you as an entrepreneur as well as the growth potential of a franchise—especially when compared to the pay you would receive as an employee at a traditional salaried company.
Run your own business with purpose
When you open a franchise because you love the business you’re building, you’re more likely to see it grow into a success. At Nurse Next Door the entrepreneurs who want to open a franchise with us are deeply committed to helping their senior customers stay as independent as possible while they age in place. Having that sense of purpose is one of the most rewarding aspects of owning a franchise business.
Nurse Next Door franchise partner Kiran Samran believes entrepreneurs should stay connected with their purpose, “Nurse Next Door has provided me with the ability to live my dream of serving with a purpose while also having a work-life balance. I am proud to be a Franchise Partner, and with now four territories, we are able to provide Happier Aging to even more Seniors!! We are making lives better everyday, from taking care of our Bold Pink Team to providing high quality care to our clients”
Opportunity for profit
Franchising often requires less working capital and less risk than starting a business alone. Working with an experienced franchisor is like having an entire marketing, development, and sales support team at your fingertips for a fraction of the cost of hiring a team yourself. Good franchisors are happy to share the knowledge and expertise you need to make your business money.
While many franchises have profit potential, some franchises are more profitable than others. Take home care for example. The home care industry is growing rapidly in North America. Reports suggest that by 2030, one out of every five people in the US will be above the age of retirement.
While there are many business franchises out there, it’s becoming clear that for many, starting a home care services business is a winning strategy for entrepreneurs who want to open a franchise.
Access Your Welcome Package which includes
- Discovery Video – 15 min overview of this opportunity
- Franchisee Testimonials
- The Nurse Next Door opportunity
- Access to our calendar to book a 1×1 call.