With rampant unemployment levels, South Africa is in desperate need of entrepreneurship to help create jobs and stimulate the economy. While starting a business on one’s own can be a formidable task, buying into a franchise business can offer entrepreneurs the necessary support and guidance to provide them with the best chance for success.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa believes that entrepreneurship is a vital component towards solving the unemployment problem. “As each entrepreneur’s business grows, more and more jobs will be created, removing the need for Government to sprint to keep up with unemployment rates,” he notes.
The problem is that, statistically, roughly 33% of small businesses fail within the first two years, and a further 50% fail after five years. “Establishing a brand that can sustain itself takes time. Consumers often gravitate towards what they know, which can make it so challenging for a new brand to attract and retain clients. This is where it can be helpful to buy into a franchise business that already has an established brand that consumers trust,” says Goslett.
“The RE/MAX business model, for example, is a franchise model where each of our over 170 offices are independently owned and operated. This gives our Broker/Owners the freedom to run their own office with the support of an established global brand behind them. Our brand also enables top agents to join as independent contractors who can form their own independent teams operating within the brand. In both instances, the Broker/Owner or independent contractor receives all the benefits of running his/her own business but is saved some of the administrative headaches and marketing expenses of establishing a brand from scratch.”
“Effectively, by joining RE/MAX, real estate entrepreneurs remove some of the biggest stumbling blocks that often cause new businesses to fumble during the early stages of their company setup,” says Goslett.
If real estate is not where your interests lie, then there are as many other industries to choose from as there are reasons to invest in a franchise business. RE/MAX of Southern Africa shares just a few of the perks to owning your own franchise business:
Proven Business Model:
Franchise businesses operate on a proven business model that has been refined over time. Franchisees are equipped with the tools and resources needed to replicate the success of the parent company, which mitigates much of the risk associated with starting a new business.
Ongoing Support:
Unlike independent business owners who must navigate the complexities of entrepreneurship alone, franchisees benefit from ongoing support and training provided by the franchisor. Whether it’s in the form of operational guidance, marketing resources, or access to training tailored to the industry, franchise owners have access to a wealth of resources designed to help them succeed. This same support network also fosters a sense of community that can help beat the loneliness that is often attributed to entrepreneurship.
Scalability and Growth:
Franchise businesses offer inherent scalability, allowing franchisees to expand their operations and grow their business portfolio over time. With a proven business model and established brand recognition, franchise owners can confidently explore opportunities for expansion through additional franchise locations or diversification into complementary products or services (depending on the nature of the franchise business).
“The perks of owning a franchise business are compelling, offering entrepreneurs a pathway to success built on established brand recognition, proven business models, ongoing support, and access to a network of like-minded professionals. By leveraging the resources and expertise of the franchisor, franchise owners can achieve their business goals with greater ease and efficiency, Goslett concludes.
Writer: Kayla Ferguson
