Becoming franchise owner can be a great way for an aspiring entrepreneur to become a successful business owner.
Franchises provide pre-packaged solutions to many of the problems that plague independent entrepreneurs. With a franchise you can start with a product that has a proven record of success, as well as marketing campaigns and business procedures that have been proven over the long run.
Nearly a third of all independent businesses fail because they cannot find solutions to problems in areas like operations, marketing, accounting or distribution. With a franchise, the solutions to many of these issues have been refined down to a science, saving you the headache of creating your own solutions to these complex business issues. These procedures work as a safety net for someone opening a business, allowing them to focus on making money and being successful in their market.
Here are some tips for making a successful entrance into the franchise arena:
Know your limits: One of the first steps is to take stock of your finances. Decide what you are willing to spend on opening this business. Even franchises have costs associated with start up like any business, but they are far less than starting a business on your own. Be aware of your credit rating in case you need a loan to help with startup costs, and if you’re partnering with someone in the venture, know their limits as well.
Know your market: Take time to think about the franchise that would be most effective for your market. Make sure there is an established client base for your product in your area before you commit to the brand. Often times the franchise company will provide you with research and consultations.
Use your resources: Franchise companies typically provide access to people who can help you get started; from lawyers and CPA’s to real estate agents, landlords and business consultants. Take advantage of these resources and get as much information and help as you can to make your opening a smooth process.
As usual, a big decision like this should always be thoroughly researched. There are guides and other resources to help you make an informed decision and provide you with useful information about any franchise you may be interested in. Do your homework and the process will be much easier. In an economy that is full of peril and at a time where failure is the norm for many American businesses, franchising offers you all the opportunity of owning your own business while minimizing the risk to you.