Buy A Franchise Or Start A Business

Buy A Franchise Or Start A Business

A franchise business is​ definitely the​ safer opportunity according to​ US Department of​ Commerce figures. This study carried out over 7 years revealed that after seven years,​ over 90% of​ new franchises are still in​ business,​ as​ compared to​ only 20% of​ individual new start-up businesses.

Most people,​ who do start a​ business by themselves,​ end up failing and losing a​ lot of​ money. I now that this is​ a​ sad fact,​ but it's true!

If you start a​ business on​ your own,​ you have to​ make all the​ decisions regarding location,​ layout of​ premises and find and vet all suppliers.

With a​ franchise business,​ the​ franchisor will advice you on​ all the​ above. in​ fact,​ you might even find that you are told where to​ locate your business,​ who your suppliers are and have some choice in​ pre designed layouts.

A franchise business provides you with the​ consistency and quality throughout the​ franchisors territory. This leads to​ higher levels of​ customer satisfaction. the​ franchisor provides full training and support in​ running the​ business. if​ a​ site is​ required,​ the​ franchisor will assist the​ franchisee in​ selecting a​ site that fulfils the​ demographic requirements of​ the​ product.

A business start up has to​ learn from trials and errors until they hit on​ a​ formula that works. They have no training or​ support in​ managing their business opportunity. if​ any thing does go wrong,​ and in​ most businesses,​ it​ does,​ then they have no one to​ turn to​ for advice. the​ advantage they have is​ that there is​ no one looking over their back,​ telling them what to​ do and how to​ run their business.

The franchisee benefits from national marketing which is​ spread out amongst all the​ franchisees,​ enhancing the​ economies of​ scale. New products can tested in​ certain territories before they are rolled out nationally.

A new business will have to​ trail any new products with their own capital and take the​ full brunt if​ the​ experiment fails!

The relationship between a​ franchisee and a​ franchisor is​ well balanced. Both parties need each other to​ survive and create a​ profit. Ongoing support and training is​ usually available for franchisees who are struggling. Due to​ the​ higher success rate,​ banks are inclined to​ lend a​ higher percentage of​ start up costs in​ a​ franchise business then they are to​ an​ independent start up. They are also more likely to​ give extra leeway when more funds are required.

If you have decided to​ go down the​ franchising route then it​ is​ important that you choose a​ franchise that is​ right for you. Don't just go for the​ opportunity that will make you the​ most money,​ instead,​ choose a​ business niche that you will enjoy.

Decide how much capital you have to​ invest,​ and then choose the​ franchise opportunity that best fits your lifestyle. Decide how many hours you want to​ work and how many employees you are capable of​ handling.

Once you have made up your mind to​ buy a​ franchise,​ always have a​ contingency fund as​ there are always unexpected costs that arise in​ the​ initial years of​ running a​ business.

If you decide to​ go it​ alone,​ make sure you speak to​ other people running the​ same type of​ business in​ other parts of​ the​ country and learn from their experience. You will find other businesses in​ the​ same field as​ you more then happy to​ part with their experience once they realise that you are not going to​ compete in​ their territory.

Make sure that you take professional advice before deciding to​ follow the​ franchising route or​ starting a​ business on​ your own.

Buy A Franchise Or Start A Business

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