Monday, October 27th, 2008
In the UK there are many franchising opportunities being offered for sale. For people who would like to manage their own business franchising can be an attractive option. People buying a franchise will obviously want to be sure that they are investing in a profitable business. Although buyers can never know exact figures, with work they can make accurate estimates on the likely profitability of the business. Evaluating a franchise to see if it will be profitable enough to make a viable business can be done through a number of stages.
Purchase Price
Every franchise will require its franchisees to pay an initial fee. This fee is the starting point for the franchise agreement. The size of the fee will vary substantially from franchise to franchise. All potential buyers of a franchise first need to calculate how much they are able to invest and rule out franchises that are too expensive.
It is not just the size of the investment that should be considered here. Also to be taken into account are other expenses needed to begin the business. These costs will include the purchase of any relevant stock, equipment, property, transport and IT systems. Totalled together these costs will give the purchase price of the franchise. It is important that franchisees also look at exactly what is included in the investment i.e. is training and support provided or will this be an additional cost.
Estimating Income
Franchisees should ask to see profit and loss accounts of existing branches of the franchise. Ideally to be of maximum use these accounts will be from a branch of a similar size and location to the branch that they are proposing to open. If taking over an existing branch of the franchise estimates will clearly to easier to make although they should be adjusted to account for the new owner’s level of expertise and experience. Franchisors will usually provide financial forecasts which again can be useful when estimating likely income.
Borrowing & Interest Payments
It is likely that anybody investing in a franchise agreement will commit to a certain amount of borrowing. When calculating profitability the repayments on this lending will need to be taken into account. People interested in entering into a franchise agreement may find that lenders are prepared to provide up to 60-70 percent of the initial investment amount. Generally the less the franchisee has to borrow the better. Franchisees should look to see how much they have to invest and then calculate how much they will need to borrow.
Franchise Profitability
By deducting the size of the initial investment, running costs and loan repayments from estimated income potential franchisees can calculate how profitable the business is likely to be. With this calculation franchisees can then decide if the franchise will make a good investment.
Tags: Business, Due diligence, franchise, franchising, Investment, Opportunities, UK, United Kingdom
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Friday, October 17th, 2008
Best franchise opportunities are no longer just available to people in the United Kingdom and USA, they are now becoming available to many foreign companies such as those in India. It has been revealed by recent developments that there is a significant growth in franchise opportunities in India and there are many companies that are taking full advantage of this opportunity that has been opened up to them. This will mean a fresh look for India and it will become much more hi-tech than it is currently.
Taking a closer look into the best franchise India sector, it is clear that pretty much all the sectors are flourishing greatly and that there are a lot of franchisee opportunities being made available. Some sectors however, are doing better than others at offering best franchise opportunities and these include, automotive, healthcare, IT, beauty, retail, business services, food and beverages.
Many companies have started out in India and have grown to establish fully developed businesses. They have been assisted along this pathway by many global as well as top-notch companies who have guided them as to the best routes to take. This has come about due to the upcoming of best franchise opportunities in India and is the reason for many of the franchises in India being supported by the government. Expert market analysts have predicted that the franchise opportunities in India will continue to grow very rapidly and there will be lots of benefits available to the people who are involved.
Best franchise opportunities will be very advantageous to companies as they will ultimately help businesses establish themselves in the developing country of India. India will also benefit from the franchises as they will help the country to improve their economy and will contribute to the overall growth of the country.
However, the most advantageous factor of these best franchise opportunities is that you can get into it and establish your own business without having to spend lots of money on making an enormous investment. All that is needed to be done by the franchisee is the selection and study of a sector and its current situation so that a plan and strategy can be formed accordingly.
The most popular sectors that are catching the eye of companies currently are healthcare, beauty and foods and beverages. Due to the fact that these sectors provide the basic necessities and the fact that there is widespread competition within them, they are fully developed within the developing country. Statistics show that they have grown by 20% and experts expect this growth to continue into the future. This will mean that there will be a number of benefits that can be reaped from franchise opportunities in these areas.
If you are new to the world of franchising and are not sure on what to do and from where to obtain the latest information then Franchise Plus is the best place for you to look. This is one of India’s largest online portals and offers the best and latest information on the world on franchising. The best franchise opportunities can be found within the portal.
So, if you want to get up-to-date with all the latest franchising information and opportunities that are available to you then visit www.franchise-plus.com.
Good luck with your future in franchising!
Tags: Bank of England, Business, Economy of the United Kingdom, franchising, India, Politics of the United Kingdom, United Kingdom, United States
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Sunday, October 5th, 2008
As one gets closer and closer to making a decision to purchase a franchise or start their own small business, there begins to be an uneasiness that comes with not knowing what it will actually look like in day-to-day operations once the business is up and running. While you can begin to see the things that will need to be done overall according to your business plan, your work load, your tasks and assignments that are required to meet the needs of your franchisor, there is always that question when starting the first day of self-employment when no one is there to tell you what to do of; what do I do now? Planning for that can help make sure that the progress you have made in researching, purchasing, training, and marketing for your franchise doesn’t come to a screeching halt when it’s time to actually run and operate that franchise. Believe it or not, sometimes there is a feeling of disappointment and depression associated with the actual running of a new franchise if a plan hasn’t been made for what will happen after the franchise opens.
In discussing the actual working relationship of a small business franchise owner, David Spafford, the owner of an Aspray Property Services Franchise has these four points to make about the actual operation of the franchise to encourage future owners.
#1 - Best aspects of being self-employed as a franchise owner
Aspray provided an opportunity to run a business opportunity that was home-based yet provided a proven business model that did not have to be created or modified to be successful at the individual level. David, the Aspray Property Services franchise owner who offered this advice, described being able to work with back-up marketing, technical support and the ability to work at home rather than in an office setting; as the best aspects of owning a franchise business. Each day having a proven business model and having received the training made knowing how to proceed with confidence easy. The added benefit of having access to franchisee support made being able to get resources and questions answered when complications arose simple and attainable.
#2 - Biggest surprises to working at home and as a franchisor
When storms and floods hit the UK, the Aspray Property Services business became increasingly busy. Referring business clients and customers and creating networks became a priority for many business. The boundaries in busy seasons begin to push the limits of work and home in the home-based business scenario where there is less and less distinction between “life” and “career.” As things settle down into slower seasons, it’s important to re-establish those boundaries so that work is distinguishable from home life.
#3 - Challenges to finding and operating a business for sale
Initially, the hardest part of starting a business and finding the franchise is knowing how to be successful at it. Not worrying about how much business the franchise generates in the beginning is a rare but valuable luxury that allowed this franchisee to be choosy in finding good contractors to work with. Making sure that the franchise owner doesn’t seem desperate for connections and willing to work with anyone but maintains standards is extremely important in the long term health and success of any franchise, especially one that deals in credibility and referrals.
#4 - Words of wisdom for future franchise owners
David, owner of an Aspray Property Services franchise, stated that his words of wisdom for any future franchise owner are to “do their homework.” Before buying a franchise, make sure that there is sufficient cash flow for the start up. Contractors always want pay straight away and insurance companies can be slow in sending out cheques. Help build good business relationships by not requiring slower incomes to dictate the rate at which your contacts receive their payments. Being organized and prepared to work hard are also essentials in beginning a franchise; however, it’s not a guarantee to earning lots of money unless a lot of hard work and effort is put into following the business model. Also be careful to avoid trying to re-create the business in a different image. It is a successful franchise for a reason, and everyone needs to work together as a team to follow a business model that has built the franchise into success. One of the greatest assets available to a franchise owner is a healthy relationship between franchisor and franchisee.
Tags: Business, business model, Due diligence, franchise, franchising, Opportunities, Small Business, United Kingdom
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