If you have money to spare, you know that one of the best ways to make it pay might be to put it to income. A good idea would be to open your own business, which could bring you a good return. Today, in fact, starting your own business is a solution that offers many advantages:
- you can earn more than you’re an employee;
- you can better organize your time;
- you can make yourself professionally.
Understanding how to invest your savings is not easy. On the contrary, it is perhaps the most difficult decision to make if what you want to achieve is a good ROI, that is, a return on investment. How do you identify a winning business? How do you manage a business? How to turn it into a profitable business?
The step to take is not small: becoming the boss of himself is a choice that gives a feeling of absolute freedom, but can scare. That’s why many people wonder if it’s better to become an independent entrepreneur or join a franchise.
In this sense, entering the wake of a well-known brand is the right solution if you do not have business experience, or if you want to give new life to existing activities, whose earnings are not satisfactory. The choice of franchising allows, in fact, to limit the risk of business and offers a guide from which to learn. Becoming a franchisee means joining a group already tested, which already has its own business culture. Being an affiliate means, therefore, having the opportunity to acquire fundamental knowledge for the management of a business much faster than if you started a business experience on your own.
How to Invest Your Savings in a Profitable Way?
There is evidence to support what has just been said: the economic crisis of recent years still has its effects on some types of business, but at the same time emerging sectors that are proving to be real gold mines. One of these is franchising.
According to the report of the Federfranchising Confesercenti Observatory, published following the 2018 Annual Meeting, in 2017 the activities in affiliation generated a total turnover of 24.2 billion, recording a + 0.9% compared to the previous year. This result was also achieved thanks to the expansion of the network of franchisors active in Italy which were 977, or 2.7% more than in 2016. The number of affiliated activities, on the other hand, reached 51,260.
In a time of economic difficulty like the one we are experiencing, aspiring entrepreneurs prefer to invest their savings by focusing on the safe with a formula that allows you to have greater guarantees of success of the business.
The most common product categories are: food, clothing, wellness (health, personal care, gyms) and, finally, items for the home and for the person. According to Assofranchising 2016 data, catering generates almost 2.5 billion in turnover and has 3,800 points of sale, but the greatest growth is recorded in the wellness sector, which produces 270 million in revenues.
Investing in Franchising: Consumers’ Opinions
If the franchise formula were not acceptable to consumers, there would be no reason for it to exist. According to the survey data of the Centro Studi Salone Franchising Milano published in April 2018, in Italy 36% of consumers (1 out of 3) prefer to buy products or services from a franchised business. There are several reasons for this:
- 51% believe that there is greater control over the quality of products;
- 26% think that a well-known brand is a guarantee of greater reliability of products or services;
- 23% consider the level of service and environmental comfort to be higher;
- 22% appreciate the fact that prices are homogeneous.
Consumers, therefore, do not act as an impulse: when they have to make a purchase, they prefer to turn to brands with the known brand because they trust the brand guarantee, the quality of the products and the fact that they will find uniform prices throughout the network.