Franchises are popular with small company owners, entrepreneurs, and those wishing to escape the corporate “grind.” This is understandable since franchises combine the advantages of company ownership with the support structure and business model of an established agency. When you consider the many advantages associated with franchise ownership, it’s easy to see why franchises are gaining popularity.
A franchise may be an excellent option if you’re looking to break into an incredibly competitive, high-risk business that requires a significant amount of start-up money and specific industry expertise. One such business is real estate, more precisely real estate investment, which is defined as home purchasing or “flipping” properties. This is an industry that virtually everyone has considered entering at some point in their lives but has been unable to do so for various reasons.
Real Estate Franchises Provide A Tried-And-True Business Strategy
The majority, if not all, new real estate investors, “flippers,” and others suffer from being overconfident in the absence of an established game plan. Purchasing a home buying franchise offers the advantage of providing you with an established strategy and business plan. For the most part, everything is laid out for you step by step.
You operate your own real estate investment agency but benefit from daily tutoring and insider information gained through years of experience, brain picking, and connection building (not to mention falling on your face several hundred times). Additionally, franchisors live only by ensuring the success of their franchisees, which is a distinct advantage for the potential franchisee.
Franchises Provide Tried-And-True Marketing Techniques
Finding excellent bargains is a real estate investor’s lifeblood. Finding decent discounts is not simple, particularly with the industry rivalry that has inundated the market in recent years. Franchises have the advantage of an established marketing structure. Certain franchises, such as those provided by Go Franchise, promote using mass media, including 30-minute infomercials on major television networks, billboards, 15- and 30-second television ads, radio spots, billboards, and direct mail. It’s quite difficult to compete with that as a private investor!
Franchises Establish Brand Awareness
Real estate investors do not have the enormous advantage of brand awareness that a well-established business does. Thus, someone seeking to enter the market and begin attracting potential sellers would have a far more difficult time doing so as a mom and pop investor going it alone than they would with the formidable brand of a great agency behind them. Consider this. If you had a $300,000 property for sale and wanted to sell it soon, would you rather sell to a Joe Blow mom and pop investor or a recognized, established company? Naturally, you’re going to choose a respected organization for such a significant choice.
Franchising Makes Much More Sense Than Doing It Alone
When you properly put pen to paper and calculate the risk vs. benefit of getting started in real estate investment, franchises make the most sense. Consider how much you stand to lose by doing it alone. Franchise costs are not prohibitively expensive, and what are your chances of success if you have the advantages of a franchise on your side? The franchise fee is a fraction of what you would pay if you made one or two errors on your own. Franchising does not ensure that errors will not be made, but it does significantly reduce risk and potentially maximize returns! Click here to know more about franchising do’s and don’ts.