The most successful small business owners usually have an ownership in multiple businesses or own a business with multiple income streams. This allows them to diversify their risks while taking advantage of potential profits in multiple sectors. Some own complementary businesses, such as a business which acquires properties to flip and a construction company. Others own businesses in different fields, simply looking for opportunities which will benefit from their expertise. But a very common additional business owned by small business owners is a franchise. These allow you to expand your portfolio with a seemingly proven business model and a business which will require limited time once it gets running, allowing you to focus on your primary business. Unfortunately, franchises often seem too good to be true because they are.
Proven Record – Franchises often have the formula to follow to success. If you are buying a franchise for a large, national chain such as Subway, McDonald’s, or Dunkin Donuts, you will have a blueprint.
Support – Many parent companies offer all of the advertising and promotional materials required to get started. They have people dedicated to ensuring the franchise gets off the ground and runs successfully.
Back Office Support – Most Franchise parent companies will help with things like HR, negotiating contracts on locations and equipment, providing inventory, and many other back office tasks which can take up a lot of time and effort on the part of a small business owner.…