The franchise businesses have 80 per cent survival chance and an independent business have about 20 to 30 per cent survival chance
As alluring as it may seem, venturing into a spa & salon industry is not all roses. Although the growth in a spa & salon franchise is relatively higher, starting it from scratch can be quite challenging. According to a recent survey, 5 out of 10 entrepreneurs who start spa & salon businesses fail within the first few years. You can steer clear of the failure statistics and skip the struggle by opting for a salon franchise.
Here are some of the reasons why you should consider starting a salon franchise.
Established Business Model
Owning a recognised spa & salon franchise has its own benefits. Along with a loyal consumer base, you will also get an established business model, which would play a vital role in the success of any company. You need to make fewer efforts to prepare a business model because their services have already captured a market share. You also don’t need to to make an addition for the procurement of raw materials because franchisors have already established relationships with suppliers.
Loyal Consumer Base
A reputed brand franchisee comes with a loyal customer base. By becoming a franchise of a spa or salon, you won’t need to spend half of your marketing budget to spread awareness. Customers will come to your brand because of the name and trademark you hold.
Lower Risk of Failure
A franchise owned spa or salon provides a lower risk of business failure. Owning a franchisee of an established reputed brand has less risk as the business concepts that have been tested were proven successful.
According to a recent study, franchisees have a higher rate of success. The franchisee businesses have 80 percent survival chances while an independent business has around 20 to 30 percent survival chance.
Apart from a good business model, starting a business requires a hefty amount of investment. Along with many other benefits, owing to a spa/salon franchise requires less capital investment in comparison to starting your own.
This is because when you buy a franchise, you are not alone. Franchisors provide the required training and guidance for business growth and smooth operation of your franchise. Apart from the initial investment, the rest is taken care of by the franchisors itself, right from finding a location, negotiating a lease, hiring reliable contractors and doing all this on-time and within budget.