Why Franchises Succeed Where Standalone Businesses Fail | VetFran

You’ve finished up a rewarding career in the military. But you aren’t quite ready (or financially prepared) to kick up your feet for the rest of your life. So, what’s next?

Many veterans look toward business ownership after the military as a way to step into the driver’s seat of their careers. If you’re exploring this option, you may wonder: Is it better to open up a small business of your own or to franchise an existing brand?

You probably won’t be surprised to know that here at VetFran, we’re firm believers in the benefits of franchising. Let us tell you why franchising wins out in a head-to-head battle.

Standalone Small Businesses Often Fail

In fact, even when the economy is thriving, the failure rate for small businesses is high. Two years after opening, around one-fourth of businesses will have closed.

Even if a small business survives past the two-year mark, the odds aren’t in its favor. Nearly 50% of businesses falter by year five and 70% of them do by year 10.

It’s Challenging to Find a Market With a Standalone Business

One reason that standalone small businesses often fail is that there’s simply no market for the product or service the business is offering. That’s always a challenge, but it’s become even more persistent during the pandemic.

That’s because consumer preferences and needs are always evolving, making them a moving target of sorts. To find success in business ownership, you need to do a deep dive into what concepts are marketable and successful. That can be tiresome and expensive, but it’s work already done by corporate franchisors before they offer you an opportunity to franchise.

A New Business Offering a New Product Isn’t Always a Winner

This is another area where franchise businesses often succeed and other small businesses do not. When you open up a small business of your own, based on your own concept, you really have no true idea whether the product or service you’re putting forth will be something people will want. There’s a very real risk that your concept will not succeed.

With a franchise, on the other hand, the heavy lifting is already done. You know the concept is a success, that it’s in demand—and in fact, businesses have to provide you with the details on profits and losses. You’ll also have the added benefit of extensive marketing efforts created by the corporate organization to get the message out about your brand.

Did we convince you? When you’re ready to take the leap into franchising, get in touch to learn how VetFran can help!