Why Franchises Make The Most Profitable Small Businesses

ThinkstockPhotos-180442738Successful franchises help many people achieve their version of the American dream:

You invest in an idea that you believe in and take charge of your career path. You build something profitable based on what you know works. You see quick economic growth after putting in hard work.

In fact, independently owned franchises are growing faster than other businesses. They are creating more jobs and producing more sales.

2015 is one in a succession of promising years for people interested in buying a franchise. Statistics show that franchise opportunities are a driving force of economic expansion.

  • Forecasts for this year estimate that economic output from franchise businesses will increase by 5.4 percent over last year, reaching $889 billion.
  • The gross domestic product for franchises is also expected to increase at a rate of 5.1 percent. This is faster than the forecasted 4.9 percent GDP increase for the U.S. economy.
  • In total, franchises will contribute a significant 3 percent of the U.S. GDP in 2015.

Buying A Franchise = Added Support For Entrepreneur 

You may be wondering: What makes franchise opportunities so profitable? How do they grow so quickly?

To put it simply, franchises achieve success faster than other businesses because you don’t have to start from scratch.

Yes, you must make an investment to buy a franchise. But, a large part of what you are paying for is an established business model and professional guidance. Your franchisor is as committed to your economic growth as you are.

In this way, owning a franchise debunks one of the myths of the American dream.

You don’t have to build success on your own.

Buying A Franchise = Marketing Assistance For Owners

Getting the word out on your products or services is difficult in the beginning. People who start small businesses must begin at square one.

Franchises help you grow your business more quickly because they provide you with pre-established tools and strategies.

Your franchisor should offer guidance as you create a marketing plan and budget. From your grand opening through the life of your business, you receive expert advice on marketing your products or services and growing sales.

Also, customers are already familiar with what you offer. You may have a loyal base of clientele in your area before you even open your doors.

Buying A Franchise = Increased Purchasing Power

Franchise owners benefit from the buying power of a large system.

A good franchise is able to negotiate prices for everything you need, so you pay much less than an independent business would.

These lower prices may apply to expenses like: 

  • Furniture
  • Equipment
  • Supplies
  • Inventory
  • Uniforms

When you pay less for these items, you’re free to use more of your sales revenue to speed up your franchise’s economic growth.

Ultimately, if you’re making a decision about the future of your career, it’s essential to understand the benefits of owning a franchise. Whether you hope to achieve business growth, higher income or greater independence, franchises are a promising opportunity.

Want to learn more about why people are considering owning a franchise as a second career? Discover what franchise opportunities have to offer entrepreneurs.

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