There are many different ways that an individual can start their own business. Some ways are easier than others, and some are far more successful. An option that should be considered for entering into the business world is through a franchise. Some have given this a fleeting thought, but because of their lack of knowledge about this type of business they are hesitant in pursuing it. Leaders in small business approved franchise options have identified some important facts about small business franchises that can help assist those who want to capitalize on the benefits of a franchise.
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What Are Some Of the Holdbacks And How To Over Come Them?
There are a few common holdbacks that prevent some who want to enter into a business from pursuing a franchise.
Not Enough Confidence
Some feel that the successful franchises are too big for an individual that is just starting out in a business.
- What may not be realized is that there are small business franchise options. Different criteria can be used to define what a small business is. The most important are those that are provided by the Canadian government because they base their statistics on this criteria.
The Cost Factor
Others are concerned about the amount it will cost for a buy in.
- The bigger a franchise is, the more it is perceived as being successful. This, in turn, means opting into one of these is going to demand a significant amount of capital. This is another concern that can be eliminated with a small business approved franchise. Being as it is in the small business category the buy-ins for the franchises are not as high.
Interest and Commitment
There are some who feel that the franchises that are available are not in industries that they are interested in.
- With small business franchises becoming popular, it means there are more opportunities for those who want to operate a business in an industry of interest to them. For example, an esthetician that wants to start a business does not want to enter into the food industry.
Related article: Financing Options For A Franchise
How Popular Are Small Businesses In Canada?
Before even thinking of starting a business, an individual has to have the confidence in knowing that this is viable. To help determine this it means looking at what leaders in the business community forecast and what the statistics support.
According to the Government Key Small Business Statistics for 2017:
The figures provided are based on SMEs (Small to Medium Enterprises). The criteria for ranking businesses are :
- Businesses with 1 to 99 paid employees is classified has a small business
- Those with 100 to 499 paid employees are medium sized
- 500 or more employees is a large business
According to statistics for December 2018 there were 1.18 million businesses operating in Canada. Out of this, 1.15 million fell into the small business category. It means that 97.9 percent of the businesses are small businesses.
What is even more encouraging for those thinking about a small business is that out of the small businesses, 53.8% of them are called micro-enterprises with 1 to 4 employees. This should give those who are thinking about a small business franchise confidence in know they can start out with a small number of employees or just with themselves serving the business until it grows.
Something else that is important when it comes to the statistics is realizing that 78.4% of the small businesses are in the service sector compared to 21.6% that are in goods producing. This is a statistic that can be helpful when choosing the type of small business franchise that one wants to consider.
The Benefits of A Small Business Franchise
The first benefits to be considered for the small business franchise are all the solutions mentioned above that it provides for dealing with hesitations that some have.
The next benefit is that all of the benefits that are applicable to large business franchises are totally applicable to those in the small business category. These include:
- The brand has built its reputation, which can take years for an independent business to do.
- Statistics show that franchises tend to be more successful compared to stand alone businesses.
- Business experience is not the main priority with a small business franchise. In a lot of cases, the company offering the franchise will provide the necessary business training.
- Although the business is owned by the individual they have the support of the company providing the franchise.
- It can often be easier to obtain financing for a franchise compared to a new start up company.
- Some of the standard business costs are reduced, such as that for marketing and advertising of the Brand itself. Depending on the franchise contract and type of franchise. This is a big plus when it comes to getting a business known.
No business opportunity should be rushed into. Therefore there are some starter steps that need to be taken by those interested in small business franchises.
The first step to becoming a small business franchise owner is to familiarize yourself with information such as what has been provided here. These are the basics and can be expanded upon once an interest is raised in a specific industry. All leaders in the small business franchise industry emphasise that becoming familiar with what this industry is about should be the starting point.
The majority of business owners that have achieved success have done so because they are in a business that is of interest to them. One that they some knowledge about or perhaps they originally were educated in. For example, those who are experienced in services that pertain to the beauty industry would be more comfortable in a franchise that is related to this.
Looking At The Options
Once the first two steps are completed, then it comes down to looking at the options. For those who feel that a small business franchise would be of interest to them then let us provide you with some further guidance by contacting us at Canada Med Laser.