Investopedia reports that “data from the Bureau of Labor Statistics shows that approximately 20% of new businesses fail within their first two years, 45% within their first five years, and 65% within their first ten years. Approximately 25% of new businesses survive for 15 years or more. These statistics have been fairly consistent since the 1990s and haven’t changed much over time.”
Every business opportunity comes with risk, whether you franchise or go independent. A major benefit of franchising is avoiding the mistakes of our founders. Learning from our history can help us scale faster and have a higher success rate.
If you’re already convinced of franchising’s pros, where it starts to get hasty is determining what franchise brands are fads and what are here to stay.
It is important to understand the Corporate Leadership’s initiatives behind consumer research. Does the franchisor invest in customer research? In what ways are corporate initiatives and metrics tied to delivering what the market wants?
A brand’s longevity should be taken into account if you wish to create something you can pass on to your children or create a nest egg for retirement.
TubToday’s Executive team works hard to understand our consumer base by generation, their needs, their wants, and their dislikes. Having this data and research allows us to develop company initiatives that cater to the ever-changing “buyer’s journey.” What works today may not work tomorrow. Adaptability is essential.