However, with total independence in managing a company, come many responsibilities: entrepreneurs must face every challenge alone, be it financial, operational or strategic. The absence of a pre-established model can also make the process of finding and retaining new customers and establishing lasting relationships with partners and suppliers very difficult.Whoever chooses to open their own business, therefore, unlike the franchisee, will have to bear all the initial investments, often considerable, required for its opening.
Furthermore, the absence of an already established brand makes it necessary to adopt huge investments in marketing and communication campaigns, which are essential to make your brand identity recognizable and convey trust to potential customers.The high failure rate of new companies is therefore not surprising: according to a study by the United States Bureau of Labor Statistics, approximately one in five start-ups fails in the first year of activity. Furthermore, according to the Small Business Administration, the main reasons for the failure of a new business include: lack of money, the adoption of ineffective marketing strategies and the absence of the necessary know-how to develop your business.
Opening a franchise business
However, if you opt for a franchising business, you will be able to promote the new company by exploiting the strength of an already established brand on the market. The limitation of decision-making autonomy is largely compensated by the possibility of managing the business in an easier way: the entrepreneur will be able to concentrate on business development even without having decades of experience in the sector.In exchange for an entry fee and a possible percentage of turnover, the franchisee will be able to benefit from a considerable reduction in business risk: an example is the reduction in costs to be borne for starting advertising campaigns and purchasing equipment and furnishings, which will be absorbed by the franchisor.
Furthermore, the entrepreneur who decides to start a franchising business will be able to take advantage of the commercial agreements already started by the brand with partners and suppliers, which will give impetus to the growth of the business. This business model also represents the ideal solution for those who intend to expand into new international markets by reducing initial investments to a minimum: the brand generally supplies the skills and collaboration with local partners necessary to establish you in a specific country while reducing risks to a minimum.Finally, those who choose this solution will be able to communicate with credit institutions with more credibility, obtaining the funds necessary to start the business more easily: banks positively evaluate the presence of an already consolidated lower business risk that uses a proven operating model.
Franchising Mail Boxes Etc. offers entrepreneurs a safe and proven business model in over 40 countries around the world. Collaboration with local partners allows us to offer a personalized service that meets customer needs.Mail Boxes Etc. logistics and marketing services help entrepreneurs to focus exclusively on the development of their business, being able to take advantage of the qualified consultancy of a large network of specialized professionals.