Misc

Is Franchising The Right Option for an IT Business?

Man Eating Lunch At A Cafe

 

Investors and entrepreneurs across the nation and in just about every country have found success in franchised business opportunities. For those not wanting to build a business from the ground up, a franchise provides the potential for distinct and guided processes, support and marketing help, brand awareness, defined tools, and provided documentation. Though retail and food based franchises are extremely popular, is franchising the right option for an IT business?

There are a number of franchise opportunities for the IT industry, some of them are familiar names such as Computer Troubleshooters, CMIT, Expetec, and TeamLogic IT. Each one of these has its own unique offering which encompasses all or most of the components listed above.

For pure investors, franchising an IT business may not be the best option. Though most of the franchisers above can provide a turnkey business, it is still the responsibility of the owner to either know or hire personnel with technical experience. This can be a challenge that is not plagued by other franchise businesses where employees can be trained to provide minimal tasked-based functions.

As a former technician or corporate IT engineer, a franchise may be a good option. The business part of running an IT company tends to be one of the areas that many new and seasoned IT professionals struggle with. Accounting, managing employees, website, as well as marketing help are all available through most of the franchisers, making the business side of ownership less of a stress for the new business owner.

The downfall to most of these business in a box solutions is the initial upfront costs and recurring fees that are assessed to the business, as well most franchise businesses require a lengthy contract requirement in order to join an organization. Though, once a part of an organization, franchisees can be afforded a number of benefits such as negotiated lower pricing with vendors, group insurance opportunities, and other benefits normally only available to established businesses.

The best advice, if exploring franchising as an option for an IT business, is to do lots of research. Explore all of the major franchise organizations, reach out to existing franchises but be aware that some organizations incentivize internal referrals, and evaluate all of the benefits and done for you services that the franchise provides.

Most of the franchise companies heavily promote managed services and cloud solutions, which further justifies the business model. Either way, franchise or traditional startup business, education and business acumen are the keys to a successful business.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>