Starting a business takes focus, commitment, and a good working knowledge of your chosen industry. If you are building a company from the ground up, you will need all of these things – and more. The Small Business Administration estimates that “about half of all establishments survive five years or longer,” while “about one-third of establishments survive 10 years or longer.” At the same time, a Harvard study estimates that a first-time entrepreneur’s chance of succeeding is a mere 25 percent.
These statistics clearly illustrate the difficulty of the task at hand. Because your new business is essentially a blank sheet of paper, there are dozens of critical decisions to make before the launch. You’ll need to decide on a business model, determine pricing, choose operating software, develop a website, create and develop a marketing plan, determine the number of employees needed and articulate a specific job description for each one, hire and train employees, create personnel manuals, and much more.
Compare this approach to choosing a franchise. According to a 2015 report released by the Service Employees International Union, 81 percent of franchise loans made through the SBA between 2006 to 2010 were successful. What is more, a study completed by FranNet, a company devoted to matching entrepreneurs with the right opportunity, gathered data from 1,500 individuals they help during this same period. What they found is that after two years 91.2 percent of these businesses were still open, with that number dropping slightly to 85 percent after five years. With the wide range of franchise opportunities, these numbers don’t apply to franchising as a whole, but the results still point to a distinct advantage.
Unlike starting a business yourself, a franchise typically offers a proven business model and a wealth of resources. Many of the important decisions about the business have already been made for you. For example, when you buy a franchise, you purchase an operations system that has already been tried and tested. Marketing materials are ready-made and available the moment you sign the papers. Hiring and training materials are provided, and proprietary operating software usually comes with the package. Depending on which franchise you choose, brand awareness is another significant advantage, instantly increasing your pool of potential customers. But perhaps the most important aspect of a franchise is the on-going support owners receive from both the franchisor as well as other franchisees.
Of course, not all franchise opportunities are equal. Some industries have higher failure rates than others, which makes choosing a proven franchise operation the most important decision of all. As one of the fastest-growing franchise opportunities, partnering with Real Property Management dramatically improves your chance for long-term success. Our franchisees are given the tools and support they need to focus on growing, rather than designing, a successful property management business. Although conforming to the operating guidelines is an important part of the process, most people find that trading a little operational freedom for a roadmap to success is worth it.
Would you like to learn more? Please read more about becoming a Real Property Management franchise owner.