The Advantages Of Buying A Franchise
If you have always wanted to start your own business, but lack experience and aren’t quite sure what you’d like to do then you need to look into becoming a franchisee. And with the number of different types of franchises available nowadays it’s more than likely you can find a business that you would truly enjoy being involved in. It gives you the satisfaction of running your own business while giving you the support of a larger organization.
Buying into an existing franchise can be a great way to fast-track your way to running your own business. By buying a franchise, you will be looking at a business that has already been tested out. Many existing franchises have been around for years and are hugely popular. This can be a good thing as you will know the business has already proven to be a success. Some of the largest companies in the country actually franchise their locations. The fast food industry has become very popular but many opportunities exist in other industries also.
If you do decide you want to own a franchise though be prepared to do some homework because there are many opportunities out there and you’ll need to find the one that is just right for you. A franchise or business opportunity may sound appealing, especially if you have limited resources or business experience. But you need to be careful. Some companies may claim that you’ll earn a certain income or that existing franchisees or business opportunity purchasers earn a certain amount. This of course is not always true. Also, recognize that once you buy the business, you may be competing with franchise owners or independent business people with more experience than you. In any business venture there is competition and depending on the franchise your competition could be another location.
If you’ve always wanted to own a business, but can’t come up with a unique idea that will differentiate you from the competition, and formulating your own business plan is intimidating, franchising can help you deal with that. But as with any business you’ll need to be a leader and learn you’re business inside and out to be successful. While a franchise comes with a lot of support it also is a lot of work. But if you’re not bursting with ideas for a business, buying a franchise might be a good choice for you.
When you buy a franchise, you are buying the product idea, the business system, and the brand’s reputation. You are typically taught how to run your business and enjoy comprehensive support systems. Franchises are mostly tested and proven business models. But make sure you know how long a franchise has existed. If you haven’t heard of them chances are neither has anybody else you know.
As a franchisee you will have specific products or services to sell and a business system to follow. But customers are more likely to trust a new business when it is a branded business franchise, as they know that the franchisee is working to a regulated franchise definition and the service will be consistent. As I mentioned earlier you get the advantage of that franchise’s reputation to help you get started. You get instant credibility.
If you are interested in starting your own business choose a franchise and contact the franchisor direct. However, you need to be aware of the pitfalls that must be avoided when you buy a franchise. Picking a franchise simply because it has a high income potential is a grave mistake. When you consider the fact that a franchise can cost well over $100,000 to purchase, you can’t afford to pay for something you don’t like. You need to buy into a franchise that does something you’ll enjoy doing too. One of the most prominent advantages is the fact that the the franchise is already established, and you don’t have to spend a great deal of time and energy building up the brand name.
Next you will want to conduct research on the parent company that owns the franchise. Learn as much as you can about a franchise before you buy it. You’ll want to know the cost to include franchise fees, store build out costs and any ongoing fees they charge such as a percentage of profits. And you’ll want to know what amount of your money goes into things like advertising. You need to know what kind of training they provide both initial and ongoing. One of the best ways to research a franchise is to contact franchisees within the company. That way you won’t be getting a sales pitch. If you can, try to request a meeting face to face with the franchiser. If the franchise is not well organized, this is a red flag that you should pay attention to. Seeing their offices and existing locations can provide you with a sense of security in your dealings with the franchiser.
A franchise can be a great way to become your own boss while still receiving the support of a larger organization. Finding the right franchise could just be the thing for you.
About the Author
Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years of experience in small business cover many topics. For more information visit Small Business Resources or go to http://www.SmallBusinessDelivered.com
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