Why would you want to consider getting into the Franchise Consulting business? What is the opportunity near and long term? What is the growth potential?
Market Growth / Potential
According to the Small Business Administration (SBA) and the Federal Trade Commission small business ownership is on the rise. This is being fueled by the baby boomer generation which is a rapidly growing segment of our population and increasingly they are turning to business ownership for a whole range of reasons.
- People are turning to business ownership as a means to secure a financial future as job security and overall job market opportunities decrease.
- People want more control in their lives and financial future and not be subject to the whims of others.
- People in or nearing retirement are increasingly choosing small business ownership as a means to supplement retirement funds and their desire to stay active and involved.
- An increasing number of businesses are choosing to become a franchise as the most effective way to distribute their products or services.
What kinds of businesses are people interested in buying?
Each year an increasing number of people are buying franchised businesses because it reduces their risk, provides them the greatest chance of success and allows them to get into a business with no industry specific experience. Franchised businesses are now found in over 80 different industry categories so no matter what type of business someone is looking for, they will find a franchised business that is available to them. More franchised businesses are sold and opened each year than any other type of business. Franchising has experienced phenomenal growth in recent years and not only is that trend continuing, it’s accelerating. It is without a doubt the dominate small business model today.
It used to be primarily food and retail businesses were franchised, today franchised businesses are found in over 80 industry categories representing a wide range of business types including categories such as medical services, computer/Internet services, child education & development, financial services, senior services, just to name a few. Regardless of what type of business someone may be interested in owning, chances are that business will be franchised.
There are very good reasons why franchising has experienced such success. First and foremost is because it reduces risk. It provides the potential business buyer a proven business model and a step by step business operations guide. Training, on-going support, national branding and numerous other benefits are provided to the franchise owner. There are several studies which clearly show that franchised businesses have a significantly lower failure rate than private independent businesses.
Another key benefit to buying a franchised business is the ability to obtain financing. Many franchisors provide financing directly or have third party lending relationships. A lender is much more likely to provide financing to a nationally branded organization, with a proven track record, than to an independent start up or resale.