Three reasons why buying an existing AAMCO franchise is better than starting your own business from scratch
If you’ve been paying attention to the 2016 presidential election coverage, you know the importance entrepreneurs play in American society. While small businesses are the backbone of the American economy, accounting for 99.7% of US employers (according to AZCentral), the decision to leave a career in order to go into business for yourself is likely the biggest one you will ever make in your life.
It’s a well-known fact that small business owners face plenty of obstacles on a myriad of fronts. The Washington Post reports that while the commonly used, “nine out every 10 businesses fail,” statistic is inaccurate, still only 50% of businesses remain open after four years. Why? For starters, most entrepreneurs make the mistake of going into business on their own – meaning without the support of a name brand, a proven business model, a targeted marketing platform, comprehensive and ongoing training, and a network of other business owners to encourage and coach. The facets of running a successful business are both complicated and numerous, leading to the question of why wouldn’t you choose to buy an established franchise business with a name brand that has a 50-year history of getting it right?
Below are three reasons why should choose to buy an existing AAMCO franchise rather than go into business for yourself:
1. Why franchising with AAMCO is better than starting a business from scratch
You can start your own business, but the required amount of work and time is staggering, not to mention the money you can waste trying to get it right. On the other hand, a franchise offers proven ways to pass these hurdles. There’s support at every turn from people who know not only how to start businesses, but how to make THAT business really work.
With AAMCO, you can be assured that you will be given all of the tools you will need to make sure your business is a success. Why? For half a century, the iconic AAMCO franchise brand has been a dynamic part of American car culture. With nearly 700 auto repair locations across the country, AAMCO is the rare, time-tested legacy brand that remains both committed to innovation and trusted in the eyes of the American consumer. Why are we so successful? Because AAMCO continually invests in our franchisees to ensure that our auto repair franchise owners know every aspect of their business and have the tools to maximize their profitability.
2. Why buying an existing franchise is an efficient and affordable venture
For starters, the obstacles that a typical business owner will face in launching a brand new business will be entirely irrelevant to you. You’re buying an existing structure, a waiting and trained staff, a marketing plan that’s been in motion for a while, and a customer base that already knows your business. This means that you’ll spend less money than you would in launching a brand new business; and if the point of going into business for yourself is to have the freedom and flexibility that owning a business provides, buying an existing franchise will mean that the hard work of ramping up a business has been accomplished for you long in advance.
One of the biggest positives in partnering with a nationally known brand with a 50-year history of expertise and customer trust is that the groundwork is already laid. We have spent decades establishing ourselves as a preeminent brand, and franchisees benefit from that legacy the day they open their doors.
The fact that the American public trusts the AAMCO brand is especially important when considering winning customers for life. We calculate that the average automobile customer will spend $54,036 on repairs during the time they own and operate a car. If that customer has two vehicles — and most households today have two vehicles or more — that amount doubles. Even though the average transmission rebuild has a significant price tag, total spending on transmission work is a small fraction of car care spending. Most people only consider replacing a transmission on a vehicle once. They get oil changes, brake work and tune-ups continually. The bulk of that $54,000-per-customer lifetime spending goes for other repair services.
3. Why choosing a brand with a powerful name is important
The prestige associated with a name brand isn’t as important as the tried-and-true methods and practices the brand represents. A brand name is the result of the consistent quality of service the brand offers to its customers and franchise owners over a long period of time. This is what the AAMCO name means:
Since our founding in 1962, we have serviced more than 45 million vehicles, and we have more than 700 franchised locations in North America. Our legacy brand continues to thrive. Entrepreneur magazine has consistently ranked us as a top choice in its annual Franchise 500 rankings of franchise opportunities. We are an iconic brand that customers know. We recently hired a marketing firm to measure how well the public knows our brand, and 92% of people surveyed recognized us as the leading brand for transmission repair. This is no accident: we’ve spent five decades building customer trust through our “Double-A-BEEP-BEEP-M-C-O” marketing campaigns.
Part of the reason AAMCO is still the dominant brand in transmission repair, while also rapidly growing in total car care, is that our corporate team continually invests in our auto repair franchise owners to help them maximize profitability. This commitment to our franchisees stems from the fact that several members of the AAMCO corporate team were franchisees themselves.
“The most important thing to remember as a franchisor is that we need to have a business model that is financially viable and successful for franchisees,” Jim Gregory, President & CEO of AAMCO says. “In order for the AAMCO brand to remain successful going forward, we need engaged owner-operators who are excited and passionate about this business. It is extremely important in the total car care marketplace, which is our space, to have very customer-focused owner operators who love to build teams and are passionate about our great national brand. Our auto repair franchise owners find success in making our national brand feel very local as they serve the communities around their stores.”