The Economic crisis due to the pandemic has affected every country in the world and unemployment rates continue to grow. People of all race are burdens with such question as “how would I make a living and provide for myself if I got laid off by my employer tomorrow?
Reading through an article this week in Entrepreneur.com, titled “restaurant in Argentina offers 15 jobs and 1,500 people attend the interview” and this happens in the province of Buenos Aires, Argentina. Quite shows that the crisis hit everywhere all round the world.
Not grin enough? A recent study by the university of Chicago predicted that 42% of all the jobs that has been lost during the pandemic are never coming back. So for a lot of people who has unexpectedly found themselves with a pink slip in their hand, the question is: now what?
If you have severance or savings you can live off of that for a little bit,but then what? Do you try to find a job somewhere else and risk having the same thing again. Being let go when the same unfavourable economic wind’s start blowing?
Or, do you take your own fate into your own hands and become your own boss?
Let me tell you this, you may not have the Necessary business skill, needed. But don’t forget that every person that’s at the top now were once at the button. All those top business minds around you were once without any business skill, with the vast resources of information now available everywhere, you can master any business skill.
This is america. You have the freedom to go out and start your own business and be in charge of your life. Rather than living your future with uncertainty cause by unpredictable economic change that can effect your career at every turn. That doesn’t mean you pop to door and drove your way home. You don’t have to quit your day job yet. But you can start it on the side during your spare time.
After all if you’re going to bet on someone why don’t you bet on yourself? Once you decide you are going to to jump off the hamster wheel of working for someone else and do your own thing instead.
And there different ways you can go about it either.
- Open a business yourself,
- Or, open up a franchise.
And the goodness is that undeniable success has been achieve via both.
Why not consider a franchise.
A franchise provides entrepreneurs with the opportunity to buy an established business with branding and processes in place. Franchising is a great way to start a business. But you don’t just have to jump into it. Before you sign that check, to your franchisor, you need to do your due diligence to understand what a franchise is?
Anyway! What is a franchise: the international franchise association define a franchise as a “method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system. And a franchisee, who pays a royalty and often an initial free for the right to do business under the franchisor’s name and system.
Acquiring a franchise would eliminate the time and risk involved with developing your own products, branding, and operating methods.
Yes. You have to pay for that convenience, and you know that even as a franchise owner, success won’t happen overnight. And you are OK with that.
but still, you’re on the fence in buying a franchise a good idea? Is it a good idea for you? Which franchise should you purchase? Will it make you money? Is this the best way for you to start a business?
Because buying a franchise is such a mojor financial decision, you need to thoroughly asses not only the specific franchise opportunity you think you want to buy. But also your own finances and suitability for operating a business as a franchise. Here are some of the questions you need to answer in order to make a well informed decision.
Franchise vs. Startup: which one works for you?
- Franchise has brand recognition: franchises bring brand awareness with their names from day one. Therefore, customers. Will know about your products which will increase your sales. By buying a franchise, you are actually buying a turnkey business that is ready and waiting for you to start.
- Franchise has higher success rate: a franchise is a proven system. All franchise operate through a common system and they are only responsible from their day to day operations. Also, they gets trained about the product line, marketing, how to deal with staff and other aspects of their daily activities. Basically, they get an ongoing support for their businesses which bring them success.
- Start-up gives you professional freedom and growth: when you have your own business, you can work anywhere you want. You Don’t need to report to other people. This mean you own a professional freedom. moreover, franchise businesses can grow only up to a certain point but there is not limit to the growth of a start-up business.
- Start-up permit’s your innovation and creativity: founding a startup needs innovation and creativity. If you are highly creative person full of different ideas and you want to make these ideas a reality you should definitely startup.
Looking to buy a franchise.
Owning a franchise (or any business, for that matter) can be a large undertaking emotionally, physically and financially, before you dive into buying a franchise, be confident in your reasoning for wanting to own one. If you think owning a franchise maybe easier than owning any other type of business, keep in mind that ownership in general comes with it’s challenges.
1. What would you enjoy selling:
What industries are you familiar with? What kind of work do you like to do, or dislike doing? If you don’t like dealing with paperwork, government regulations frequently hiring people (and doing background checks). Opening a home healthcare franchise would be a bad idea for you even if there is a need for it in your area. Similarly, if you don’t know much about taxes and accounting, a franchise that offers those services wouldn’t be rights for you either. Remember that if your contract won’t let you sell your franchise or you can’t find a buyer, you’re stuck with it for the term of the contract. Even if you don’t like running the business and it’s unprofitable.
2. How well established is the franchise brand.
How long has the franchise been in existence? Have they been in business for many years or are they brand-new? How many other franchises have they opened and where are they located? While there can be some advantages for becoming one of a franchisor’s first franchisee’s, there’s also a significant risk with an untested brand and a company that doesn’t have a well established track record in franchising.
3. Consult with the better business bureau and other agencies.
You can see if there are consumer complaints against a particular franchisor by doing search on the better business bureau’s site or by making a request in writing to the FTC. It’s also important to research whether individual franchises near your potential location have a record of complaints after all, if a franchisee down the street has a bad rating. That will reflect you.
4. Attend franchise events.
The international franchise expo bills itself as the largest expo in the u.s, with more than 300 franchises in attendance, the international franchise association, the industry’s largest trade group, host an annual conference, while a number of smaller outfits host regional events. While it’s one-stop shopping in terms of basic information and networking, keep in mind there are lots of “shiny ad’s at such events.
2 thoughts on “Is business franchise right for you?”
Godfrey, good post. I have friend who counsels folks on whether to consider a franchise. He notes the risks are smaller given the model has been tried elsewhere. Subway realized that franchisers were more sales oriented than the corporation, so they chose a model with no company owned stores. So, it can be a win-win and less painful way to get started. Keith
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Thanks Keith, comparing franchise to our traditional start-up. Start-up contribute to a huge percent of failed business than franchise. And with a franchise system, though the capital may be much but it pays👌