This article is about The Advantages Of Franchising In Indiana. In today’s highly competitive market scenario in Indiana, franchising has become one of the most lucrative forms of business options. According to recent estimates, franchising accounts for over 40% of the total retail sales in the country. On the other hand, 90% of the startup firms in the US had failed miserably over the past three years.
Franchising is a successful business venture in recent times, primarily because of the brand identity. Today consumers are becoming more brand conscious. Popular brands that spend billions of dollars on advertising and marketing have therefore set up franchisees in various parts to enhance consumer loyalty and boost sales.
One of the key advantages of franchising is that there is minimum risk involved in this system. In the current scenario, starting a new venture in Indiana is a risky affair in the sense that it takes a much longer time for a startup business to become successful.
However, in the case of franchising, as the company’s name is already known, franchisers can bank on selling a proven business technique. The product or service has already been sold successfully in the past and therefore no extra effort is required to increase brand identification, and customer loyalty. On the whole, there is not much risk involved in the business.
Low capital investment
Starting a new venture involves huge expenses. However, when you are setting up a franchise in Indiana, you need not make a huge capital investment. There is no need to do an extensive market research. All that the franchisee needs to do thoroughly go through the existing pool of information available about the business. This would be useful for him to understand whether the business or the type of the franchise product or service is suitable for him.
Huge savings on training
Generally, if you run an individual business, you have to invest a substantial capital on training the management team. This is definitely not a concern in case of a franchising. This is because the franchiser provides training for the franchisee.
The training program can vary from giving formal instruction and on-the-job training to staff as well as complex ones that combine classroom or field training. It can be imparted at the franchiser’s facility as well as the franchisee’s business premises. The franchiser also provides management assistance, so that the member of the franchisee can overcome any barrier to conduct business.
Companies spend a huge amount on marketing and promotional activities, where small businesses and startup firms often lag behind. In case of a franchise business, the franchiser bears the cost. The franchising company pays for the promotional and advertising campaigns, whether it is regional or national. The franchiser also acts a consultant and helps the franchisee in developing effective marketing programs, especially those that are of a local nature.
In the US today, consumers do not want to run to the Central locations for every Mac Donalds pizza they purchase or for every Kouton shirt they wear. They look for such facilities in their localities. Therefore you can think of running a franchise business in Indiana as it much more profitable option in the long run.