The Pros And Cons Of Buying A Franchise Straight Out Of College

The Pros And Cons Of Buying A Franchise Straight Out Of College



In today’s rapidly changing economy, college graduates realize that embarking on a​ steady career that will last many years with one company is​ a​ reality of​ the past. More likely than not, college graduates will change jobs multiple times over the course of​ their professional lives, and job security will be something they only dream of. as​ a​ result, more and more young men and women entering the workforce are exploring options outside of​ the traditional “9-5” job. For the entrepreneurial thinker, buying a​ franchise will rank high on this list of​ possibilities. Yet, despite the inarguable success of​ numerous franchises and countless franchise owners across the country and around the world, is​ venturing into the franchise business the right choice for a​ recent college graduate?

Persuasive cases exist on both sides of​ the issue, and in​ order for each individual to​ make the best personal decision on whether to​ pursue a​ franchise opportunity, he or​ she should take time to​ evaluate several factors involved in​ franchise business opportunities. The following are several pros and cons of​ making the college-to-franchise transition.

The Pros

1) No Experience…No Problem

Because franchises succeed based on a​ proven system of​ operation, capitalizing on franchise opportunities requires little to​ no previous experience. Rather, established franchises provide the tools necessary to​ make your business profitable, including training manuals, marketing and PR, and full support for your endeavor. Consider, for example, any popular restaurant franchise. The franchise owner does not need to​ spend time or​ energy on advertising and marketing, as​ the parent corporation ensures the development and implementation of​ marketing strategies. in​ the same way, the franchise owner does not need to​ research best business practices to​ determine how to​ operate his or​ her particular store. He or​ she needs only to​ follow the tried and true pattern of​ operation that is​ already in​ place.

2) Early Independence with Less Risk

Few things are more gratifying than building a​ business in​ which you work for yourself and are able to​ see and keep the fruits of​ your labor. With interest in​ entrepreneurship increasingly on the rise, more and more young professionals are looking for ways to​ generate an​ income and create a​ lifestyle while working for themselves. Because of​ the systems of​ success already in​ place with franchise business opportunities, young entrepreneurs can minimize business start-up risks while maximizing their potential for success.

3) Organizational Support

Today’s young business owners are not alone in​ navigating the at-times-rough waters of​ entrepreneurship. Organizations such as​ the Small Business Administration in​ the United States (http://www.sba.gov/smallbusinessplanner/index.html) and the Young Entrepreneurs Association in​ Canada (http://www.yea.ca) provide useful information, tools, and resources to​ help business owners on the path to​ success.

As positive as​ the pros are, however, as​ with any decision, it​ is​ equally important to​ weigh the cons. When determining whether a​ business franchise is​ right for you, consider the following.

The Cons

1) Leadership Skills

As a​ recent college graduate, you may have extensive by-the-book business knowledge and be able to​ foresee assets and liabilities without a​ blink of​ the eye. But many franchise opportunities also require the ability to​ lead a​ staff of​ people. it​ is​ important to​ ask yourself if​ you know the principles of​ hiring and firing, and if​ you are comfortable managing people even if​ difficult and stressful situations. Some experts recommend that before you step into the role of​ employer, you might benefit from first spending some time as​ an​ employee, particularly in​ the franchise industry which you are planning to​ pursue.

2) Financial Capabilities

Even when it​ pays off in​ the long run, up-front franchise financing can be a​ costly endeavor, and it​ is​ not uncommon for franchises to​ take at​ least a​ year or​ longer to​ break even. in​ fact, it​ is​ uncommon for them not to. Do you have the resources to​ fund your franchise venture while still being able to​ provide for your basic needs such as​ food and shelter? And, are you willing to​ stick with your franchise even through any early difficult days and see it​ through to​ the profitable days ahead?

3) Industry Interest

As with any business endeavor, to​ become successful in​ a​ franchise business opportunity, you must be committed to​ persevering for the long haul. Have you done enough research to​ ensure as​ much as​ possible that the franchise you have chosen is​ one that you will be able to​ enthusiastically devote yourself to​ for several years to​ come? Are you letting your passion dictate the franchise you choose, or​ are franchise opportunities dictating your passion? to​ be successful, be sure that it​ is​ the former and never the latter.

The franchising market is​ strong and growing larger by the day. From 2018 to​ 2018 along, there was an​ 11% increase in​ the number of​ franchise units! Given the incredible growth of​ this industry, it​ is​ natural that it​ will remain a​ serious consideration for any young college graduates seeking to​ reap the benefits of​ free enterprise. And with the many types of​ business available, franchise opportunities offer numerous industries to​ fit with individual interests and talents. Honestly considering the above pros and cons will help you in​ your decision on whether starting a​ franchise business straight out of​ college is​ right for you.




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