7 ADVANTAGES OF BUYING A FRANCHISE IN NIGERIA
7 ADVANTAGES OF BUYING A FRANCHISE IN NIGERIA There are so many benefits of establishing a franchise based business as opposed to starting a business on your own.
Rather than carrying out a company formation to start a new limited company in Nigeria, most entrepreneurs often opt for buying into an establishment franchise to get started in business. Buying a franchise can prove to be a viable alternative to starting your own business from scratch. Doing franchise business in Nigeria can have loads of benefits, especially for entrepreneurs who do not really want to be weighed down by the rigors and risks of starting a business, because in a franchise the franchisor provides a developed way of doing business, ongoing guidance, systems and assistance in return for periodic payment of fees.
I have listed below some benefits of buying a franchise in Nigeria in no particular order.
- Strong brand: when operating under the umbrella of a franchise, you have the benefit of operating under an already established brand of the business this means there will (in theoey) be far less work as opposed to starting up your own business. The likelihood of you spending less money in trying to establish and build on the brand of the business is also possible. Usually the franchise to establish will already be known and trusted by the market and therefore should produce of the big a steady flow of brand-loyal customers. When you buy a franchise, you automatically adopt the franchise trademark and the benefits of a registered trademark. From the very start of the business, a franchise receives a well-known trademark, which if popular in the franchise’s market, will surely attract customers without any major additional efforts of the entrepreneur. This would have otherwise taken much money if the franchise had decided to start his/her own company, he/she would have had lots of expenses required create and to promote their new brand. The strategic identity that comes with buying a franchise is such that the franchisee adopts its brand identity which has a cumulative effect on the market. Most established franchisors have already survived a lot of challenges in their respective industries and are easily identifiable to the public. The name recognition that comes with an already established brand, as well as the franchisors system standards, that all franchises must follow give the customer the assurance of enjoying the same quality of service and products in your own company.
- Ongoing operational support. Unless you are already experienced in the specific business you are trying to start, you will need special training and support. Franchises offer the advantage of a support and security system. Often franchisors want you to be successful and to do that they will make themselves available every step of the way. Because the high success ratio will help them expand their business and also keep allowing them to bring in more potential franchisees for their company, therefore, franchisees are not only controlled, but also constantly supported by the franchisor, franchisors use various measures to support its franchisees, including direct assistance giving professional advice on the technical knowhow on any business related issues, providing continuous training. Ongoing and online support is readily available and accessible as well as special alerts and continuing education.
You are definitely not alone when you are building and running your business and you can always access experienced people when you hit a rough spot or just want to share new ideas for growing the business. Franchise companies have staff dedicated to providing ongoing support to franchisees.
- Training programs. a well-grounded franchise company will have training programs in place that are designed to bring you up to speed on the most successful method to run the business. Reference materials are likely going to be made available to assist you in dealing with whatever hurdles comes up while you are running your business. As such, you don’t necessarily need any special business experience whatever to run a franchise. Franchisors usually provide the training you need to operate their business model. This is why franchises have a higher rate of success than startup businesses. Often entrepreneurs, when starting their own business, face serious difficulties because they do not know how to act and respond in different situations. It if were possible most entrepreneurs would be willing to adopt the required knowledge from experienced and clearly established entrepreneurs and contact them for technical advice on everyday business issues. The good news about buying a franchise is that a franchisor is directly interested in the success of the franchisee. Providing continuous training and granting access to comprehensive operations manuals, which will provide exhaustive instructions and directions as to the organization and management of the company’s business processes. The franchise headquarters can provide training in everything from the technology involved in the accounting. Transaction and cash handling procedures.
- Risk avoidance. This is pretty important and a major reason any entrepreneur might opt for buying a franchise – “Risk Avoidance”. The biggest reason to buy a franchise is that if you are smart, it could help to avoid much of the risk involved if you had to start your own business from scratch. You will benefit greatly from a proven business model, and there will be systems that are set in place to follow. The good news is that all these systems will be tried and tested by the franchisor company which will already have a wealth of experience. And it will invariably spare you certain risk that would have otherwise been involved in running a new business.
- Simpler business financing. Buying a franchise comes with multiple benefits; accessing business financing is one of them. You will find it easier to secure finance for a franchise opportunity as banks are usually more willing for you to take out a loan. It may also cost you less to buy a franchise than setting up your own business. The fact that acquiring business finance for a franchise is generally easier is exciting for entrepreneurs. Most investors are far more willing to invest in a business with a established and growing network, a secure brand, and effective support structure. Even more interesting is the fact that in most cases, finances may be acquired from the franchisor making life even easier for the new business. So as a franchisee you are guaranteed little or no difficulty in attracting of initial investments to start the business. An actual financial indicator of other operating franchisees as well as the franchisor’s background and reputation instead of an abstract and unproven business plan might convince banks or perspective investors to grant a financing on lighter conditions.
- Business relationship. In acquiring a franchise, the franchisee can also take advantage of the numerous business relationships already established by the franchisor company. You will benefit from their distributors and suppliers network that will most likely already be in place. This will spare you the fears and uncertainties involved in building a new distributor and suppliers networks. You are automatically spared the risks involved in sourcing for a distributor and supplier network. The advantages of already established relationships with advertisers and marketing teams may also be of great benefit to your new business startup.Ultimately a franchise offers you the independence of Co- business ownership supported by the benefits of exiting business network. You automatically adopt an already established reputation on image, proven management and work practices, access to national advertising and ongoing support. A franchisee enjoys the protected reputation of the franchisor. This means that his/her business transactions will operate under the umbrella of the franchisor company, where business relations with Franchisor Company is inevitable.
- A proven business model. Buying a franchise offers you the advantage of operating under the banner of an already established business, hence, the business ideas, the business brand, their operating techniques and so much more are already tried and tested and are in place to be implemented, by the franchisee. Most franchise already have an established reputation and image, with a well proven management system in place. When you acquire a franchise, you do so because you trust the franchisor’s already proven business model, which will significantly reduce the risk of running headlong into business failure your risk of failing is relatively minimal because that business has operated already for many years and has most certainly faced difficulties, adverse situation, they have made mistakes, corrected those mistakes and have gained extensive knowledge and experience. This serves to build additional trust in the franchise and business. After joining the franchise network, the new franchise immediately adopts the knowledge and technologies created and fine-turned by the franchisor company. A new franchisee will easily avoid mistakes common at the start of business. He/she will be granted access to already proven suppliers and developed work methods of the franchisor company. This will greatly reduce the chances of bankruptcy and potential damage which occur due to incompetency in doing business. The business reputation of the franchise is very vital and is what gives positive expectations that will keep patrons loyal to your business, this benefit coupled with a built in umbrella of legal protection is a plus for your business startup and one you cannot easily get as an independent business.