Hoist has disrupted the franchise model by helping make business owners achieve financial independence while allowing them to retain full ownership of a company.
In the post-pandemic world, more people are empowered to forego the strict 9-5 in an effort to attain proper work-life balance. Learning that we don’t need to stick to the traditional ways of working has opened up many alternate career possibilities. It has even prompted many employed individuals to take the leap from the corporate ladder to being business owners.
But starting a business can seem like a mammoth task, especially if it’s your first time doing it. The independent 'start-up' model can be daunting or even ill-fitting for your needs. If you're ready to start a business, but the typical small business route isn't for you, then it's time to look at franchises. A franchise business is the right path for you if you want to be your own boss without having to face the market risks of a small business.
The franchise model is simple. It is a kind of license that allows a franchisee (an individual who buys into the original franchise) to offer a product or service under the franchisor's brand name. The franchisee is given access to the franchisor's unique business expertise, procedures, and trademarks. A franchisee also benefits from the existing market standing of the business. The supplies you'll need to manage your business are also provided by a franchisor.
However, there are further alternatives to the franchise model itself, and one such provider is Hoist. Hoist offers a new and improved way of owning your business at the fraction of the cost of a franchise. But before we get into how Hoist works and how it has disrupted the traditional franchise model, let’s understand what franchises are, to begin with.
The business-format franchisee receives a fully integrated system for providing the franchisor's product or service. Its main distinction from a standard franchise is that it follows a business system that is primarily dictated by the franchisor. The franchisee is only supposed to manage the daily, day-to-day activities of their branch. Eg. McDonald, KFC, Starbucks, etc.
Here, the franchise owner is typically selling products manufactured by the franchisor like automobiles, soft drinks, garments, etc. The main distinction between typical franchises and supplier-dealer arrangements is the degree of the relationship.
In a traditional franchise business, a franchisee handles the distribution and sales of all the franchisor's products, on a semi-exclusive or exclusive level. In a supplier-dealer relationship, a shop can sell all products that are within the business's purview, even competing products and brands.
Social franchising is when you apply the franchising model to the supply of products and services that cater to the needs of the “bottom” of the economic pyramid.
It focuses on the lack of basic needs such as safe drinking water, enough food supply, genuine medications, excellent healthcare, education, sanitation, and electricity. Examples of Social Franchises are education institutions, NGOs, etc.
While you're looking into the many franchise opportunities or best franchises to own, an important aspect is to consider the pros and cons of investing in a franchise as well. Here are some that you need to consider before investing in a franchise.
Franchise firms offer a team of industry experts that can help you at key points in your journey. When it comes to expanding to new sites, franchises have repeatable business strategies. If it works in one place, it will most likely work in another.
A franchisee can get a business loan from a third-party lender, but they can also get money from their franchisor. The terms and interest rates for this sort of financing are usually beneficial.
Because of the group's purchasing power, you may buy supplies at a reduced cost per unit. More savings for you equates to more profitability. These connections have taken years to create, and they may be tough to establish fast on your own.
Franchise businesses inherit the brand recognition that the franchisor has built up. One of the risks of beginning your own business is that customers will be unfamiliar with your brand. When starting a new firm, you must establish your brand from the ground up. But with franchises, your branding and brand recall has already been in the works for years.
While you can be your boss to some extent, you will always report to someone higher up in the franchisor hierarchy. This is especially true when it comes to your creative power over the brand and your decision-making constraints.
Many franchises have incredibly expensive initial expenses, preventing entrepreneurs from joining the market. Franchisors prefer business owners that are willing to put money down to get their venture off the ground. You'll also have to pay franchise fees regularly.
Your franchise location is inextricably linked to the larger brand. If the franchise brand is experiencing a public relations issue, it will almost certainly have a negative influence on your business.
If you want to stay in business, you'll need to satisfy specific financial targets. You'll have contractual commitments and financial targets to meet if you want to continue in business with a franchise.
Now that you know the many advantages and disadvantages of franchise businesses, it’s time to decide if franchising is the best fit for you. Most people have mixed feelings about franchising. Typically, because of the financial constraints and limits in control.
While the advantages to partnering with a franchisor are many, the lack of control, creative freedom, and contractual obligations can often be a big deal-breaker for potential business owners. So if not franchises, what’s the next best option for you?
Franchising can be a cost-effective option, but keep in mind what you want in the long run. If you want absolute control over your business (owning all 100% of your business), then a simple franchise model won't work. If you want some advantages of an independent business model, but none of the risks, then a sole proprietorship will not fit your needs either. That is where Hoist comes in!
Partnering with Hoist is the perfect business opportunity if your needs involve scaling businesses at your pace, no contractual obligations, full control over your business, and so on. Hoist gives you more freedom than the traditional franchise system, with the support of a franchise system. While franchise models may not work for you, at Hoist, we offer a range of services that are like none other. We believe that owning a business should be as simple and inexpensive as possible.
Combing the best of franchises and a sole proprietorship, the Hoist model gives you a business tailored to your goals. A franchise model provides support, aid, and resources. A sole proprietorship gives you freedom and full control over your business. Partnering with Hoist will give you the perfect blend of both worlds.
When you partner with Hoist, you own 100% of your business. We believe that it's your business, so you get to choose the rules. Unlike a franchise, you will have complete control over how the business is handled. You don’t face any of the creative or business limitations of a traditional franchise.
Hoist gives you access to a booming business model, with all the advantages and nearly none of the drawbacks.
When looking for the best franchises to own, remember that you don’t own the business completely. You just have a license to run a branch of the franchisor/business. However, at Hoist, we focus on building your brand, and not ours. This means you own the brand, the identity, and every aspect of your business — but we’ll help you every step of the way.
Traditional franchise opportunities don't allow for a personal or individual brand to show through, only the proprietary business. We don’t bring Hoist into focus anywhere on your website or marketing spaces. You also have full creative control over the brand, when partnering with Hoist.
Like a franchise model, Hoist has readily available funding. But instead of investing large amounts individually, Hoist has a low initial investment. We’ve cut down the startup costs of a typical franchise by over 90% so that you can start your business with only $667 per month.
When establishing a franchise, you'll need a specific quantity of liquid capital on hand. You'll also need enough cash to fund your company's development and cover any startup fees. The franchisor will further establish sales goals for you to accomplish to keep your good standing with the firm. If you don't reach these sales targets, they may decide not to renew your franchise agreement.
But at Hoist, we are hyper-focused on your success. We reduce your additional costs by covering certain essentials in your business including training, website creation, generating leads, sourcing subcontractors and more.
In a traditional franchise system, you have to leverage the brand’s recognition for yourself. At Hoist, you have the added benefit of Hoist building the brand for you. We help create branded items like business cards, door hangers, and brochures. Hoist will also help design your logo, create and deliver marketing material, identify your ideal service area and help create your portal listings. It’s the benefit of a franchise, with the individual freedom of owning your identity.
At Hoist, we also provide partners with the option of part-time business operations. We understand that not everyone is in the position to go full-time. We still provide you with all the features!
Subscriptions to Hoist begin the day you sign up. Even before your business goes online, we begin a lot of work the minute you become an owner. We'll be there for you from the start, with everything from training to starting logistics. Usually, businesses take months to set up with location scouting and tons of paperwork to get out of the way. But with Hoist, all this is quicker, more efficient, and less effort on your end.
Training is provided for free. We provide top-tier training on how to expand your business at no extra cost. To build your skills as an entrepreneur, Hoist also has about 35 to 40 hours of training that we provide. However, this training can be done at your own pace, so you can decide when you want to start.
Traditional franchise training periods are often inflexible and happen during a set timeline. If you feel like you are getting lost on your journey, we have ways of helping. To assist you, you'll receive access to our extensive library of lessons, Q&A forums, and one-on-one coaching.
What more? Hoist is constantly on the lookout to grow and develop, so we’re fully open to any suggestions. If you have any recommendations for updates, let our team know. We intend to improve consistently over time.
The traditional franchise model comes with its fair share of pros and cons. But as Hoist has shown, there’s always a way to break away from the ‘traditional’ and be a part of the ‘new’. If you’re ready to explore the myriad of possibilities that Hoist can open up for you, then get in touch with us today. From training to marketing, we give you all the tools and guidance you need to start, run, and grow your painting company with Hoist.
But remember, be it a painting company with Hoist, franchise opportunities from a big corporation, or a different small business, there are a lot of ways to achieve your goals. All you need is the preparedness and willingness to put in the extra hours of work to yield the fruits of your labor.
https://www.hoistup.com/post/franchises-under-100k-cheap-business-models-hoists-blog
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