Wednesday, December 9th, 2009
If you’re looking at starting your own business and you should consider all the options that are available to you. Many people find that a franchise is a good way to start a business that will make money from the beginning. With the franchise you’re buying a business that has a proven name in the industry and this gives you a benefit from having to build your own name. In some cases it can cost you more money to purchase a franchise that having everything done for you and be well worth it. When you open your doors you will find that with a franchise business people will not hesitate to come in and purchase your products.
Starting your own business can be very expensive because not only do you have to create a product and a company image you also have to get people to come into your front door. With a franchise people will feel confident because they will see a brand name they recognize and will not hesitate to make a purchase. You have to remember when buying this type of business you are also buying a reputation that in many cases can be priceless.most people that start independent businesses have to build up their name brand before customers feel comfortable buying their product.
Remember that when you start a business you need to consider buying a franchise because everything is ready to go for you. You also want to consider that having a brand name that is recognizable to be a big plus for you to be successful. Also with a franchise business you get a support team that can help you through getting set up and on your way to making money quickly.
Tags: Brand, Business, Consulting, Directories, franchising, Opportunities, Regional Directories, Small Business
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Monday, October 12th, 2009
The experts say that owning/operating a franchise will multiply the chances of long term success in business 10 fold. Is this true? It most certainly is. Why? There are many, many reasons that franchises are more successful. The only goal of this article is to provide some knowledge that I gained while researching different franchises myself.
So you have decided that owning a business is something you definitely want to do. I commend you for this. Statistics show that 4 out of 5 millionaires own there own business. The real question is, can you do it? Franchising definitely increases your chances.
How do you know if franchising is right for you? Here are some basic questions to ask yourself. Are you comfortable with failure? Are you a risk taker? Do you have years to wait before you earn money? Do you have huge amounts of start up capital? Are you creative and business minded?
If your answers to any or all of the preceding are NO then franchising could be the direction you want to go in. Once you are set on a Franchise, there are 5 major criteria that you should look at when deciding which Franchise is right for you.
Top 5 criteria when choosing a Franchise
1) What industry is right for me?
Franchises encompass almost any industry you can think of. Food service, Packing/Shipping, Automotive services, Clothing, Cleaning, Apparel, Shoes, Convenience, Cosmetic, Hair care, Collectibles, Books, Education, Health & Wellness, Fitness, Dental, Etc…. On and on the list goes. There are so many franchises to choose from that this MUST be the first question that you answer for yourself. If your not passionate about the industry you choose, your setting yourself up for failure.
2) How much startup capital do I have?
Franchises come in all shapes and sizes. Some have large up front costs and others charge less up front but get a bigger portion of the ongoing sales that your business does. The more you have to start with the more options you have. Some franchises have out of pocket startup capital requirements as low as $1,000 while others will look to see $100,000’s before they will consider you as a candidate. This information is easy to obtain.
3) Am I willing to operate my franchise myself?
The who and how answers when it comes to daily operation of your franchise are very important. This will have a very large impact on the profit margin you can realize with your franchise. If you are willing to put in full time hours in a productive capacity then you will see more profit but you are sacrificing your time to do so. The answer to this question will largely determine the amount of leverage you can apply to your business. That leads us to question four.
4) How much immediate & long term income is required?
This question helps to think down the road to a time when you have proven that you can have success. Is one franchise enough to meet your income requirements? The answer to question 3 comes into play here. It is physically impossible to be in two places at once. If multiple franchises are necessary to meet your income goals then you will need to bring management skills to the table. This is something that many people just can’t bring themselves to do. Putting others in charge of your families financial security can be a deal breaker.
5) Where is the best LOCATION for my franchise?
Location, Location, Location. We have all heard this before. It is never more true than when deciding where to put our franchise. Multiple locations may need to be thought about when choosing the first location due to the possible territorial restrictions your Franchisor may have in place. This is so important. It will be the single most deciding factor whether you succeed or fail. Facility costs vary widely based on class of space, traffic counts and many other factors. The analysis should be thorough. Don’t settle for an inferior location unless you are absolutely sure the savings will outweigh the difference in revenue your franchise will realize.
So that’s it, my top 5 criteria when choosing a franchise. Obviously there are many, many more questions to be asked and answered. In fact there is a list of questions that could be put together for each of the top five listed here. As someone who has been through the process, my advise is simple. Be very thorough in your research, ask lots of questions, don’t get pushed around by anyone and interview no less than three current franchise owners to get there perspectives before you make your decision.
It is proven that the franchise concept is one that has stood the test of time. If you are certain you want to be in business for yourself and can put up with not making all the strategic decisions yourself, a franchise just might be the perfect business model for your success. Again, without a passion for what you are doing, success is not probable with or without a franchise.
Tags: Business, business model, Capital requirement, Directories, franchising, Health & Wellness, Opportunities, Regional Directories
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Tuesday, September 15th, 2009
There is little doubt that buying a business franchise involves a making a big commitment both financially and in terms of the amount of work that it involves. For this reason it is important that people thinking about investing in a franchise take their time in considering the options. If you are investigating a franchise opportunity these are some of the questions you should ask.
What type of franchise is being sold?
Since there are several different types of franchise systems in the UK the first question to ask is what type of franchise is being offered. Probably the most widely known kind of franchise is the business format franchise. Business format franchises involve a broad relationship between the franchise and franchiser. In this type of franchise the franchisee receives assistance with some or all aspects of running the business. Other types of franchise include manufacturing franchises and basic product franchises.
How many franchisees does the company have?
Before investing in a particular franchise it is useful to know how many franchisees the company currently has. A large number of franchisees indicate that the company is successful and well established. However this may not always be a positive factor. A high number of franchisees may mean that the market has become saturated and that there is a reduced opportunity for profit. Similarly prime market locations may already be occupied. Newer franchises that have not yet had time to become established may offer a better long term investment.
How high is the franchise fee?
Most if not all business franchises will require franchisees to contribute an initial investment fee. The size of this franchise fee will vary between companies. If you have a limited budget then the choice of available franchise opportunities will clearly be narrowed down to those you can afford. Many franchisees will take out a loan to help them with their investment.
How much support and training is provided?
Many franchisers will offer training and support to their franchisees to assist them with running their business. The actual amount and quality of support offered will vary between franchisers and so it is important that you investigate just what you will be getting for your money. If you have had little previous experience of managing a business then it is beneficial to choose a franchise that provides a lot of help to its franchisees.
Tags: Business, Company, Directories, franchise, franchising, Investment, Opportunities, UK
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