A franchise is a fantastic way for a new business-owner to find success and avoid many of the struggles that independent owners face.
Franchise businesses provide pre-packaged solutions to the dilemmas that new business owners inevitably face. A franchise provides a product or service with proven success as well as ready branding, marketing and advertising solutions.
Almost a third of all new businesses end up failing because of problems related to operation, marketing, distribution and accounting. Franchises often provide those systems built-in to their model – saving a struggling owner the time and stress involved with creating solutions from scratch and leaving him or her with time to focus on creating revenue both for themselves and the brand.
Important tips for franchise ownership:
Know your own capabilities:
An important and early step in opening a franchise is doing a realistic financial assessment. Know what you are willing to invest to open the business. While franchises often involve less initial costs than an independent business, many companies also require their franchise owners to have a certain amount of capital. Having a thorough knowledge of your credit profile and the value of any partners is also essential.
Know the market:
Any serious entrepreneur researches the market into which he wants to step. What kind of business most lends itself to your area? Is there a particular demand that needs answering? In many cases, a parent company will help you with research and planning.
Use extra resources:
Parent companies often provide access to experts who can help launch a business, including accounting and legal services, real estate agencies and consultants. The more help you can get at the beginning stages – the better.
A major decision such as opening a business involves lots of research. There are endless amounts of books, seminars, websites and publications offering advice and guidance to beginning entrepreneurs.