Trust and credibility are two factors that can tip the scales toward success for a home-based business. There are also two factors that are difficult to achieve. For many businesses, trust and credibility require years of consistently providing consumers with a quality product or service.
With the power of franchising, however, entrepreneurs can achieve instant trust and credibility and several other benefits that are especially valuable to the home-based entrepreneur.
“Customers can be hesitant to trust a new and unknown name, especially when they have other options they recognize,” says Jason Stowe, VP of Franchise Development for Cyberbacker. “A franchise provides brand recognition, which translates to instant credibility for a new business. Rather than taking years to build trust from scratch, franchising allows you to leverage trust from day one. It’s a key benefit of franchising and can be a game-changer for entrepreneurs looking to start a home-based business and rapidly attract a strong customer base.”
Stowe has been a leader in the franchise industry since 1994. He has owned and operated his own brands with partners and has provided consulting services in franchise development to entrepreneurs since 2006. Stowe currently serves as the VP of Franchise Development for Cyberbacker International, a global leader in the field of virtual assistants. Cyberbacker empowers business growth by connecting companies with world-class virtual assistants who are qualified, trained, and aligned with the business’s values and goals.
The franchising industry has grown steadily in recent years, exceeding economic expectations despite rising inflation, a tough labor market, and other challenges in the business landscape. Home-based entrepreneurs who are curious about the benefits and power of franchising should consider the following factors.
Finding Stability in an Evolving Marketplace
By normalizing remote relationships, the COVID-19 pandemic increased opportunities for home-based businesses. Still, many of the business models that have emerged in the wake of the pandemic are relatively new and largely untested.
Franchises provide higher stability and lower risk in a dynamic marketplace by giving entrepreneurs access to a proven model.
“Consumer behavior has become much more unpredictable since the pandemic,” Stowe shares. “Technology has changed consumer habits and consumer expectations. It has also increased competition by fueling a boom in entrepreneurship. All those factors have come together to create a complexity that can be daunting for entrepreneurs. By launching a franchise, however, you step into a proven business model that has already adapted to the current marketplace.”
Franchises eliminate the need for the type of trial and error that typically marks a new business launch. Not only do they provide a solid starting point, but they also give entrepreneurs access to a network of support. By drawing upon the wisdom of the franchisor, franchisees gain a broader understanding of the implications of market changes as well as insights on how to navigate them successfully.
Balancing Stability with the Need for Autonomy
While franchising can be a quick way to get a business off the ground, there are trade-offs entrepreneurs must carefully consider. The limitations franchising places on autonomy and flexibility can be the most challenging for home-based entrepreneurs.
“Entrepreneurs need to understand that becoming a franchisee means joining a team,” Stowe explains. “Being a good team player means committing to the consistency needed to maintain brand quality across the board. Too much autonomy would threaten brand recognition and subsequent customer loyalty, which are two of the main draws of franchising.”
Franchising limits flexibility, but it doesn’t completely do away with it. In most cases, the power of franchising gives entrepreneurs various opportunities to add their personal touch to the business.
“Within certain parameters, franchisees will still find ways to personalize their franchise,” Stowe shares. Tailoring marketing strategies based on their understanding of local preferences is one example of a way in which an entrepreneur can improve a franchise model. Rather than seeing the uniformity of franchises as limiting, entrepreneurs should consider it an advantage that allows them to focus on running their business without needing to reinvent the wheel on everything from branding to operations.”
Those looking to start a home-based business have high odds to overcome. Statistics show that one in five businesses fail within the first year. Nearly half of small businesses have shut their doors by the fifth year. Franchising essentially allows entrepreneurs to bypass those early years.
“When you start a business from scratch, you’re competing against established players who have better momentum, better brand recognition, and frankly a better chance at success,” Stowe says. “Franchising allows you to be one of the established players from day one. It levels the playing field for the aspiring entrepreneur looking for success as a home-based business owner.”
