Small Business Franchising Basics
Why buy an existing small business or franchise rather than start from scratch? What are the benefits of buying a established small business? There are at least three major benefits as follow:
1. Immediate Savings
When you buy an established small business or franchise, you save time, energy, and money out rightly. You also skip the lengthy process of researching and creating business plans and models, for these things were already taken care of. Usually when individuals decide to sell a business they prepare a business plan or offering summary for you. Also, if there is financing needed for your purchase, it is not as difficult to obtain since lenders are more likely to finance a business with a proven track record.
2. Turnkey Operation
In most cases, everything is included in the purchases of small business. You inherit the infrastructure that has already been established by the previous owner, which includes the customers, suppliers, employees, equipment, and systems as well. These things normally takes longer period of time to establish. It is a good possibility that the previous owner(s) may offer some insight and assistance, therefore making the transition easier. In addition, the cash flow most likely will start immediately, rather than in an unknown time frame when starting a brand new business. Profitability is not in question as it would be in a startup.
3. Duplicated Success
Opening a franchise comes with the advantage of knowing that this business has been successful in other locations. The idea and process of running this business have already been proven. Therefore the learning curve in operating the business can be virtually eliminated. In addition, risk of failure is much lower with a franchise than starting a brand new small business. There is a much higher likelihood of success if the same business has done well in other areas. Moreover, with this set-up you can immediately focus more on the expansion and profitability aspects of your small business.
6:02 PM, April 15, 2009
This is solid advice for anyone considering the pros and cons of starting a business. These days, it can often be tough to start from scratch - not a bad idea to look at franchise opportunities.
http://salesandmarketingtips.today.com/2009/04/15/the-sales-process-opening/
6:34 PM, April 15, 2009
Thank you.
It's not much, but I hope this provides the most basic framework for franchising.
9:58 AM, April 19, 2009
There are definite advantages with a franchise, but there are a few hazards, like if the brand takes a hit, then so does your business.
10:45 AM, April 19, 2009
That's an excellent point mark. However, that's always the risk that you have to take, and is also true with non-franchised business, start-ups specially.
5:05 PM, May 23, 2009
Sometimes I respond to comments, but this year it really hasn't been very often, but I do try and go to their blog and comment on one of their posts. I very seldom check to see if anyone has responded to any comment I make.
Thank you
sagar
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8:57 PM, May 29, 2009
Your advice is well taken and I realize there are advantages and disadvantages in everything we do. I like the challenge of starting from scratch because it takes effort, sacrifice and dedication. I have seen new owners come into a thriving business and ruin it. If we do not build relationships with our customers, we are doomed. Everyone wants and needs repeat business. Thanks for your insight!
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2:33 PM, May 30, 2009
franchise is good idea for small business.we can minimize the marketing and advertising cost