Franchising can be an excellent way to start a business without starting from scratch and lowering business risks, especially for a small business. Join the Simplicity Car Care franchise to minimize risk, increase visibility, and grow exponentially.
Risks faced by new or small auto body shops
Small businesses, including auto body shops, will face similar challenges when starting a new business. These are some of the most common obstacles:
- Low cash source
- Wrong team or process to run the business
- No market for the service or product
- Too much competition
- Weak product marketing
- No business model
- Poor customer service
Let’s review some small business statistics:
- Within the first year, 20 percent of small businesses will fail.
- In two years, that number changes to 30 percent.
- After five years, that number is at 50 percent.
- After ten years, 70 percent of small businesses will fail.
Keep in mind the percentage doesn’t only consider those that have made it to the next year; it still applies to all start-ups from the day they start. This means only 30 percent of small businesses will be operating after ten years.
Becoming a franchisee, while not foolproof, has many helpful resources to grow a business from scratch.
How becoming a franchisee minimizes risks
1. A pool of resources
Franchising with an auto collision franchise like Simplicity Car Care offers franchisees access to resources that wouldn’t otherwise be available to them, at least not immediately.
There’s already an established network of knowledge, connections, and resources to pull from. This offers new businesses the chance to overcome their competitors quickly, in ethical ways. Many new businesses will have to struggle to discover market secrets, trends, and expectations. Becoming a franchisee skips that step.
2. Connections with similar values
There are many franchises to choose from among all industries. With Simplicity Car Care, auto body shops can find a franchise that matches their skills and values. To work well together, both parties need to agree customers are valuable, just as quality repairs are.
3. Money management
Since one of the main hurdles new businesses need to get over is capital and budgeting, becoming a franchisee can provide much-needed relief. A franchise that has been proven successful will have the experience and guidance in money management to help its franchisees succeed.
Small businesses without a franchisor are less likely to get business loans when needed because they have no history to show their worth. However, backed by a franchise, start-ups are more reliable and trustworthy.
4. Established branding
Franchises will have a well-established brand already which takes away the need for new businesses to try and establish themselves in a competitive market. Franchises are generally well-known not only as a business but as a brand as well. Instead of spending lots of time and resources on developing a brand, auto body shops can pair up with auto collision centres to represent their brand.
5. Support system
Not only do franchisees have a new pool of resources to learn from, but they will also have access to a support system from the franchise as well as other franchisees all working together toward a common goal.
Franchises open up a format to discuss new ideas, innovations, trends, obstacles, and more. It becomes a collective mind to build up each business, become more visible, and get more traffic.
6. A proven formula for success
Lastly, joining a franchise means joining a group that has already shown a proven formula for success. Instead of trying to develop a business model that works or marketing strategies that perform, join a franchise to learn from what’s already working.
Franchises are just as invested in the franchisee’s success as their own. Once they’re working together, it’s beneficial for all parties involved to succeed. Everyone works together toward growth.
Franchises will have guidelines to follow that will reduce start-up errors, lists of equipment, tools, and processes to improve performance, and research on marketing and advertising strategies to pull from.
Start accumulating the perks of becoming an auto body shop franchisee with Simplicity Car Care. Our auto collision centres offer amazing environments for new businesses to learn and thrive. Check it out today.