Many perceive entrepreneurship as a path to independence and financial success. Still, it’s filled with challenges that, if not properly addressed, can lead to failure. Statistics reveal that 20% of new businesses fail during the first two years of being open, and approximately 50% fail within the first five years. By the tenth year, only about 30% of businesses are still running. These numbers illustrate the high-risk nature of starting a new business from scratch.
The reasons for failure range from poor planning, lack of market demand, and insufficient capital to operational inefficiencies. Given these risks, entrepreneurs seeking a more secure entry into business ownership might consider franchising as a viable alternative.
Franchising offers a proven business model, brand recognition, and ongoing support. It significantly increases the likelihood of success. Franchise businesses have claimed a success rate of over 90%, far exceeding the success rates of independent startups. This success can be due to the fact that franchisees are purchasing a business model that has already been tested and refined.
Michael Rigtrup is a seasoned entrepreneur who has successfully navigated the challenging waters of business ownership by embracing the franchise model. The owner of the Frenchies Modern Nail Care franchise in Utah is an example of how franchising can offer a lucrative and rewarding career path.
Rigtrup was drawn to franchising because it provided a “plug-and-play” solution. It allowed him to capitalize on a business model that had already been perfected over a decade. This approach enabled him to bypass the trial-and-error phase that sinks many startups. His success with Frenchies shows the potential of franchising in creating profitable business opportunities with lower risks compared to starting from scratch.
Rigtrup has valuable insights as to why franchising is an attractive option. He emphasizes that pushing the envelope is essential for those who aspire to reach the top of their careers. “Risk is normal for everyone in the entrepreneurial world,” he states. “But in the context of franchising, it’s a calculated risk. You need to adopt a proven business model to mitigate much of the uncertainty independent business owners face.”
The Frenchies Modern Nail Care franchise exemplifies how a well-designed franchise model can succeed even in challenging economic conditions. Rigtrup notes that one of the reasons he chose Frenchies is its resilience to economic downturns. The business is built on the principle that self-care remains a priority for consumers, even in times of financial strain. Women, in particular, continue to invest in self-care as a means of coping with stress and maintaining their well-being.
Rigtrup’s decision to franchise Frenchies is sound, given the statistics of the nail industry. With nail services constituting $12.8 billion of the $13.3 billion personal nails and waxing salon market, there’s clearly a strong demand. The global spa and salon market is also expected to grow at a compound annual rate of 5.66%.
Frenchies’ business model also reflects Rigtrup’s commitment to creating a supportive and empowering environment for employees and customers. The franchise delivers a premium experience, differentiating itself from competitors by offering a higher level of service and quality. Rigtrup plays a crucial role in building the franchise’s culture. With this, the individual contributions of each team member are celebrated.
Ultimately, franchising is a viable alternative for entrepreneurs who seek the security of a proven business model while still embracing the opportunities for growth and success. Michael Rigtrup shares important advice to aspiring franchisees like him: “Never invest in something you don’t fully understand. Nails may not be my personal skill set, but I’ve immersed myself in every aspect of my business model. I rely on my specialists for their technical expertise, but I can still identify issues and solve problems because I’m involved in the business. You must be present and knowledgeable about your business to succeed.”
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Name: Michael Rigtrup
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