Franchise Do You Have What It Takes to Be an Entrepreneur?
There are many reasons to own your own business, among them 1) your time is your own to schedule vacations whenever you want. 2) your earnings are controlled by you; and 3) you can’t be fired, laid off or terminated. However, people do need to consider Risk, Money, Knowledge, and Skills needed for an entrepreneurial venture.
Perception about Risk: Is it safer to work for someone else? Short term, yes, but… Can performance determine security? Will you meet your long-term financial goals of security and retirement working for someone else? At first, owning your own business can be very scary, but you can grow at the pace you want and the longer you own it the safer it becomes. Perception of Economic Risk: Lost home equity; lost substantial portions of investment portfolios, etc. Lower Your Risks by looking at businesses not affected by the economy. These include such things as janitorial companies, hair care businesses, automotive, senior care, residential repairs, business coaching, sales training, expense analysis, and damage restoration. Things to consider: professionals still need training, people still want quality education for their children, businesses still need their offices maintained, employers outsource and use temp personnel companies rather than committing to new hires. MANY businesses thrive in ANY economy. Small businesses constitute 94% of all US Businesses and create more than 75% of all new jobs in the US. They are how 5 of 6 millionaires have made their money. Business ownership options include creating a start-up business, buying an existing business, or buying a franchise. Suggested reading: Rich Dad, Poor Dad series. Start-up business advantages/disadvantages were listed. A major disadvantage includes capitalizing, which is one of the toughest things; there are limited financing options. Buying an existing business is attractive to lenders, offers a past history to examine, and has systems in place already. Disadvantages: trying to figure out what the REAL cash flow is; trying to find out what the seller’s hidden motives are; poor training/support by the former owner; higher debt service, and potential employee defection.
What is a Franchise? It’s the creation of a distribution channel to quickly build brand identity and attain market dominance. It’s a license to use a name and trademark, products, and business system in exchange for an initial franchise fee and ongoing royalties (based on % of gross sales.) Follow the proven successful “business system” (business in a box) for success. Talk to current franchisees and they will let you know the success or failure rate. This is not true with an independent business owner.
Franchise Myths: 1. It only involves fast food. There are actually over 3,100 different franchise companies in more than 80 industries with over 900,000 operating units. 2. The quality of the product is good. McDonald’s example was used: you can make a hamburger and maybe even a better one, so if it’s not the product then what is it? It’s the consistency of the product. 3. Successful franchises emerge into successful business where there is no competition. Fact: they emerge from well-established industries by creating consolidation.
Page 1 of 3 Franchise 4. Franchises are expensive. Most in fact (80%) require under $250,000 upfront and all but 30-35% of the investment can be financed. 5. High investment is required for high return. There is no automatic correlation between the cost of the franchise and the potential return. Service businesses require far less capital investments and frequently yield higher returns. 6. Industry experience is required. Fact: Less than 25% of franchisees are in the same industry they were in previously.
A franchise allows you to be in business for yourself but not by yourself. Find a business that creates the lifestyle you want and you’ll enjoy the business. You don’t need to reinvent the wheel. Separate the function of the business from the function of the business owner. Do your due diligence and determine what it is you want from the business: challenge, freedom, equity for retirement, etc. If you don’t have sales, management and customer service skills then you must hire someone who has what you lack. Determine your business model: home-based, FT or PT employees, number of units, etc. The more research you do the less chance of failure. Never settle for something that doesn’t meet your needs. Be sure you have the support of your family (at least emotionally if not also financially) before you get into anything. Know that the closer you get to a decision, the more fear you will feel. This is expected.
By Dick Munson, Owner of FranNet.
How to Ensure Job Security in a Tight Market
Do you have multiple talents? I'm sure you do! You can probably keep yourself as busy as you want to be. With the right foundation of planning and information gathering, you can easily plan and implement your new career and achieve your goal of self-employment this year. It used to be possible that if you worked hard and hung in there, then eventually, you'd be recognized for your efforts and rewarded in your career. However for hundreds of thousands of Americans this hasn't been the case for quite some time. And no one is exempt. From entry-level workers on up to middle managers and executives, individuals find themselves missing rungs on their corporate ladder, or worse, downsized. Indeed, job security is a rare commodity these days. And maybe that's why more and more disillusioned corporate refugees are leaving the 401k fold, opting to put their skills to use by going into business for themselves. The entrepreneurial spirit is alive and well. But the reality of it is that start-up businesses require risk. Likely more risk than the average corporate castaway would care to take. And that's why franchise businesses have become popular solutions for many job seekers. Today, entrepreneurs around the world are discovering that running a franchise from your own office can not only be convenient and enjoyable, but also a smart move financially. In the U.S., over 20 million businesses are run from home-offices. Most Americans consider this kind of business to be legitimate and often times, we envy people who own these businesses. To learn more about running your own business, follow this link.
Staff Writer, The Career News
Page 2 of 3 Franchise Many Entrepreneurs Choose To Work from Their Home
Of course not every business can be run from your house, but with the help of computers and technology, a wide variety of franchises can be. There are many reasons why this is the smart choice for entrepreneurs, people who need supplemental income and for those disillusioned corporate refugees who want something better. 1. The cost of the business could be significantly lower because you will not need signage, interior branding or to buy or lease commercial property. 2. Your overhead will be greatly lowered, putting more cash in your pocket. You will not have to pay real estate fees or additional taxes. In fact, you might be able to enjoy tax deductions because you are operating a business out of your house. 3. You'll no longer have to commute to work, lessening wear and mileage on your vehicle and allowing you to spend that typically lost time focusing on family, hobbies or putting it back into your business. Just remember to check out all the rules and regulations in your town and neighborhood before you embark on your journey. Have possible scenarios in your mind for problems that could arise, and think about how you will solve those issues now so you can put all your effort into growing your new business. Whether you're a parent who desires to own a business while raising children or you're an entrepreneur who's simply conscious of overhead, owning a franchise business could be a smart decision for you. If starting a franchise business sounds like it could be your best career move, but you still want more information, then sign up today for your complimentary consultation with a Franchising expert at FranChoice. They're the "Matchmaker" of the franchise business, and there's never a charge for a potential Franchisee. To instantly sign up for your free consultation, just go to FranChoice.
Staff Writer, The Career News
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