When broken down, franchising simply represents methods of distributing products and services. For some time now, entrepreneurship has been the career path for many victims of downsizing and corporate layoffs. Despite the uncertain job market and the unstable economy improving considerably in recent years, business ownership remains a standard means of employment.
Franchising has become a major priority for people who seek the freedom of owning a business without undergoing the struggle of creating a concept from the ground. For that reason, franchising will continue to be a relevant part of the economy. Studies show that when done right, it can be a powerful business model for quick growth. Franchisees win through economies of scale, a defined system, mentorship, and support. As more entrepreneurs look at franchising as a viable path to success, it is vital to understand the emerging trends and how one can take advantage of them.
Increased Technology
Technology has made business ownership easier. The major concept taking root with franchises today is the ubiquity of software services usually hosted in cloud. This means a software that resides on the web instead of one installed on a computer. Today, technology allows the business owner to transfer all the software programs installed on their individual computers and move them to the web. On the web, it is easy to host them in a single secure environment. That way, it is also easy to get access from any internet-connected device, whether in a phone, a tablet, and etcetera. By virtue of their size, franchises command a lot of volume. Even small franchises are always in need of modern systems to take charge of the complexity of the trade. As a result of the increase in demand for IT reliance in business, this trend will certainly continue to expand.
International Expansion
The internet has been the science behind the expansion of businesses of all sizes in foreign markets. While startups may have difficulties in establishing and building their brand presence globally, franchising has a high potential of achieving success quickly internationally by venturing into locations where there is a clear market for their products or services. Looking closely, it is certain that there is incontestable demand for high-quality products and services in countries where there is urbanization. International expansion of cabinet refinishing companies and more helps in filling a void in an emerging market by creating a potential first-mover benefit within that market. In turn, the move increases global brand awareness. Also, it gets easier for franchisees to test new services and offerings and optimize the existing model to meet the local demand.
Internal Financing
Throughout 2016, internal financing options will continue to expand. That will, in turn, make business ownership possible for more interested parties. Through individual franchisors, internal financing options are available to allow the franchisee afford the cost of expanding business in new locations. Grout cleaning companies programs alongside others present varying benefits. These appear in a low-interest with more relaxed approval standards easier to obtain as opposed to traditional loans offered at banks. It is clear that buy-in fees are way higher than the average person can afford in one go. Even the cheapest come with an exorbitant cost. For first-time entrepreneurs, it can be tough to obtain a business loan; the reason internal financing programs have been set up. These programs will keep providing franchisees with ready access to the capital necessary to seize opportunities.
Mobile Marketing
Clients will keep having a great impact on franchises in 2016. Smart companies are hence optimizing their websites for mobile devices. With the increase in tablet and smartphone usage, there is today, it is critical for every franchise to have a website that is compatible with such devices. When the mobile savvy user can’t have the opportunity to view the website from the available mobile device, chances are they will find a competitor who is technologically advanced.
Franchising is swiftly evolving and is mostly associated with home services and fast food. However, its benefits can be applied to nearly every industry, especially those that lack powerful management or those that are expanding rapidly. Powered by innovation, strong business models, and the need for immediate results, a franchise can be highly profitable.