This intuitive approach seems to be spurring the growth of the franchise industry year after year. Using proven, scalable business models, with brand recognition, infrastructure, methodology and support systems already in place, small business owners everywhere are investing in numerous franchise opportunities across the country.
The Franchise Business Economic Outlook for 2014, developed by IHS Global Insight and released by the International Franchise Association Educational Foundation back in January, predicts that the overall growth in quantity, output and contributions to the U.S. gross domestic product (GDP) for the franchise industry will exceed its 2013 numbers and eclipse the rate of the rest of the economy in general. Steadily increasing GDP contributions by franchises have been at least 4% over the past three years, and 2014 is on pace to continue this growth streak.
What are the keys to success in this industry, and why has it continued to outperform the private sector over the past few years? Here is a look at some of the factors that make investing in a franchise system a viable and lucrative opportunity for entrepreneurs everywhere.
Synergy – Joining a growing franchise is like jumping on-board a moving train. With everything working together and moving forward, picking up steam along the way, these expanding businesses capitalize on sheer momentum. As brand recognition and awareness continue to increase, adding franchise locations becomes easier and success begins to snowball.
Proven system – Many franchisees come from a business background, either from a corporate environment or from another small business. Either way, by joining an established brand and system, franchise owners are freed from having to develop a concept and business-specific strategies, avoiding the basic growing pains of starting a new business from scratch. They are able to hit the ground running, immediately implementing their personal business philosophies and practices within the framework of the franchise, dictating their own level of financial growth along the way.
Stability – It’s much safer to invest in and open a franchise business than an unproven start-up. Successful franchises are structured to maximize owners’ profitability and increase their odds of sustaining their business. With a turn-key approach to setting up new locations and having the training, support and marketing already in place to assist franchisees every step of the way, it becomes less likely that the independent franchise businesses will fail. With shared accountability, it behooves everyone in the organization to do whatever it takes to help each and every franchisee achieve long-term success.
Be your own boss – Although it can often feel like a huge burden and increase stress to be a business owner, in a franchise system, the parent company works to alleviate distractions and allow the franchisee to just run their business. An owner is able to enjoy the perks of creating the schedule, making employment decisions, and controlling their financial destiny, all with the ongoing support of a proven business leader, the franchisor.
Essentially, owning a franchise allows franchisees to enjoy the benefits of having their own small business without the headaches of trying to develop and fund a start-up. With the brand recognition, expertise and support already in place, a franchise is designed to aid its local owners in being successful and keep them in business. With so many different types of franchises to choose from, entrepreneurs interested in going this route need to identify which industry they would like to pursue to achieve the personal growth they are seeking, while giving them the ability to leverage company resources and maximize the earning potential they desire.
Go ahead and turn the key!
Batteries Plus Bulbs, founded in 1988 and headquartered in Hartland, WI, is a leading omni-channel retailer of batteries, light bulbs and smartphone repair services for the direct-to-consumer and commercial channels.Through a nationwide network of stores, the Company offers a differentiated value proposition of unrivaled product selection, in-stock availability and customer service.
Batteries Plus Bulbs is owned by Freeman Spogli, a private equity firm based in Los Angeles and New York City. To learn more about one of Forbes® Top 10 Best Franchises in America for the past three years, visit Batteries Plus Bulbs Franchise