This is Black Business Month, and we are celebrating all month long, in this episode we talk about the benefits of buying a franchise to achieve business success. Listen to this episode to learn why a franchise could be a better pathway to business success. In the competitive landscape of business ownership, Black entrepreneurs face unique challenges that can make success elusive. Marketing, sales, hiring quality staff, securing funding, and keeping up with technology are just a few hurdles that all businesses face. However, the stakes are even higher for Black-owned businesses. According to the U.S. Bureau of Labor Statistics, nearly 50% of all businesses fail within the first five years. Yet, franchises present a compelling alternative, with a failure rate of just 10%. Moreover, Black-owned franchisees generate twice the revenue of independent Black-owned businesses, making franchising a promising avenue for sustainable success.
Many prospective business owners overlook franchising as a viable option, often associating it with the steep costs of owning a McDonald's or another high-profile chain. However, not all franchises require a million-dollar investment. In fact, there are numerous low-cost franchises available for under $15,000. For those who take this path, the financial rewards can be substantial—the average income for a franchise owner can reach $130,000 within two to ten years of operation.
Currently, Black-owned businesses account for approximately 11% of all businesses in the U.S., yet only 3% of these have employees, according to the SBA Office of Advocacy. Franchising could be a game-changer for Black entrepreneurs, offering the benefits of brand recognition, an established customer base, comprehensive training, and a detailed blueprint for success—all elements that increase the odds of business longevity.
For Black business owners considering franchising, here are some essential tips:
1. Evaluate your interests, skills, and budget to find the right franchise.
2. Utilize free and low-cost resources from organizations like the SBDC, WBC, SBSD, MBDA, SCORE, and your local Economic Development Department.
3. Attend both in-person and virtual franchise events to network and gather information.
4. Establish a relationship with your banker before purchasing the franchise to ensure financial readiness.
By exploring franchising, Black entrepreneurs can leverage proven systems and support networks, significantly increasing their chances of long-term success in the business world.
If you're think about buying a franchise then you'll want click here to get the FREE franchise checklist created by our host.
To connect with our host, Tashaya Singleton, send an email to TashayaSingleton@gmail.com or join The Secrets of Earning Money Show Facebook Group. If you would to assist you with your business, insurance or financial goals, send an email to info@tjsfinancialsolutions.com or visit her website www.tjsfinancialsolutions.com
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