If you’re considering starting your own business as a consultant, look into buying a consulting franchise. If you’re among the new job consultants that start their own businesses every year, a franchise may be a good idea for you — or not, depending on what you want.
What are the advantages of having a consulting franchise?
Instant name recognition
job consultants know that name recognition is one of the best things to ensure business success. If you buy an already established franchise, you’ve got name recognition in your favor, since the business itself is already widely known. That means you have to do a lot less in terms of marketing to get your name out there and recognized as an expert in your area of focus.
That doesn’t mean you don’t have to do any marketing, of course; it simply means that you’ve got a leg up in terms of name recognition before you start. People will see your business’s name and know what you do, so that they’ll be much more likely to use your services.
Established protocols and structure
With these types of franchises, job consultants have established protocols and structures to follow from the “”company office”" right out of the gate. This can be advantageous, since you don’t have to muddle around trying to figure out how you want to do things. You simply set up your system as dictated by the company, follow the established protocols of the home office, and you’re good to go. This framework is useful for job consultants who don’t want to try to do things “”their own way,”" and simply want to get up and running immediately.
Support
Again, you don’t have to try to figure out how to do things on your own. You have support from the home office to teach you the system, basically, and then you simply implement it for yourself.
What are the disadvantages of having a consulting franchise?
No opportunity to be unique or to do things “”your own way”"
The disadvantages of having a consulting franchise will vary from franchise to franchise, but it really depends in large part on what kind of person you are. If you’re someone who wants to figure out how to do things your way, a franchise is likely not for you. Yes, you will struggle a bit in the beginning as you figure out your system of doing things, and you’ll be completely responsible for your own marketing practices, for example, but if you want to function on your own with independence, you’re better off hanging out your own shingle instead of going with a franchise.
Ongoing royalty fees and other fees
You don’t simply “”buy”" a franchise and pay one set fee or asking price, as you might with another business. Instead, there are ongoing royalty fees you have to pay to the company, and you may also have to pay into a “”company fund”" for marketing expenses, promotions, and so on.
Company-based expenses
With a franchise, any personnel you hire may have to wear uniforms (or you might have to), and you may have to buy supplies and other things from the company office. These are expenses that can add up, and unlike another type of business, you can’t simply shop for “”the best price”" when it comes to supplies and buy them wherever you find them. This certainly makes purchasing simpler, but it can also impact your bottom-line negatively, in that you can’t spend your money simply as you want to, shop for bargains, et cetera.
There are both positives and negatives for job consultants who are considering buying a franchise. Take a careful look at them before you decide for yourself which is right for you.
