Is Starting A Franchise Business The Right Business Choice For You?

By Gabriel Adams

Once upon a time, you were reading Robert Kiyosaki’s “Rich Dad,
Poor Dad”. At that moment, you realized that if you wanted to
become financially independent, you would have to start your own
business.

You came up with a great plan and put it into action. It
becomes more successful than you could ever imagine. You become
successful within your community and your wealth begins to grow.
However, it seems to top out at some point. Could this be due to
the competitive franchises that are all around you? Could your
business have more growth potential if you decided to buy into a
franchise? Let’s just say that it’s a possibility.

But what is a franchise business? This is simply a method that
a company can use to easily distribute any of its services or
products via retail outlets which are owned by separate, third
party operators. These third party operators conduct their
business by using the franchiser’s trademarked goods, marketing
methods and services as well as the name recognition of the
mother company. It’s a great way to expand operations and grow
geographically. But is it the right way to go? To know the
answer, let’s take a look at the pros and cons to starting a
franchise business.

First, let’s go over the advantages. Suppose that you were the
franchiser…The franchisees will be responsible for putting up
capital, management and, of course, employees for the target
location. This reduces your financial commitment. You, as the
franchiser, will only have to grant the rights to have the
franchisee distribute your trademarks, products or techniques.
Because the franchisees also become owners, their motivation to
succeed would most likely be greater than that of an employee of
the franchiser. This is a given since they also get a share of
the business profits.

Every new location that’s set up immediately earns a profit for
the franchiser. The franchisee needs to pay you what is called a
franchise fee. Aside from that, the franchiser would receive a
continuing royalty, which can be anywhere from 9% to 10% of the
gross income of the franchisee. With that being said, the
franchiser has to make sure that the proposed location would be
a good, profitable venue with high traffic and accessibility.
Franchising your business can also open up opportunities for
international expansion.

Sounds good so far, right? Not quite. There are still some
disadvantages to becoming a franchise business.

You have less direct control over the network. Nevertheless,
you still have enough control to be able to terminate a contract
if the franchisee does not follow your agreements.

There may be times when the franchisee would resent the
continued royalty payments. Some would even think of ways to
terminate a franchise contract. The might even try to violate
the terms of the franchise agreements. These are all serious
issues that could arise and you should be aware and prepared,
just in case.

Another disadvantage is when a franchisee fails to uphold the
quality control methodology you have implemented in your
business. This is an issue that can directly affect your
company’s image. It may even cause a customer or even a member
of the personnel to become injured. The franchisee can be sued
and, as we are all aware, no one likes a lawsuit. Unfortunately,
when that happens, the franchiser gets named in the litigation
as well. Although, if the franchiser has not detailed how the
franchisee should act in the particular area affected, the
franchiser has usually been successful in defending such
lawsuits.

In other words, you should definitely think long and hard about
deciding to franchise your business. Weigh the pros and cons
carefully. And, if you play your cards right, the right choice
can surely boost your business.

About the Author: Learn more about the pros and cons of
starting a franchise business at
www.businessfranchiseworld.com/

Source: www.isnare.com

5 Important Business Tips For Starting Up A New Business

By Stefan Holm

When starting a business, there are several tips you should
follow in order to guarantee its success. By following these
simple business tips, you will experience less problems along
the way and build your way up to the top in no time at all!

Tip #1: Start-Up a Business in the Area You Love

Keep in mind that you will be spending a great deal of time
getting your business going, marketing it, and maintaining it.
Therefore, you need to select an area of business that you are
interested in. If you don’t enjoy the business, it will feel
more like a burden than a pathway toward financial freedom and
success.

Tip #2: Don’t Quit Your Day Job When Starting a Business

When starting a business, it will take some time before you
begin to show a profit. Obviously, you won’t be able to get far
with your business or with your personal life if you do not have
some cash flowing in. Therefore, it is better to keep working
while you start-up your business. After the business gets up
and going and proves itself to be successful, then you can quit
the day job!

Tip #3: Build Up a Client Base

Start building up a client base before you actually start up
your business. Start networking before you invest cash into the
start-up of the business. This may entail giving away some of
your services or products for free in order to build a
reputation. Remember, it is never too early to start marketing
your business. Then, when you do get your business started, you
will have clients already in place.

Tip #4: Build a Team

When starting a business, it is important to create a support
system. You will need a team of people to support you while you
start up the business as well as afterward. Your team doesn’t
need to consist of a large number of people. Just one family
member or one friend can be enough, so long as you have someone
to bounce your ideas off of. Even better, consider finding
someone to be your coach or mentor. Someone that has experience
helping others in the same situation as you can prove to be
quite invaluable.

You might also want to consider adding a few professionals to
your team. These professionals may include accountants,
lawyers, or bookkeepers. All of these people can help you get
and keep your business on track.

Tip #5: Create a Plan

Before you start-up a business, you will need to create a
business plan. In order to create a business plan, you will
need to research your ideas in order to determine if there is a
market for your product or service. Your business plan will
help you determine what your business goals are and how you will
achieve them. In addition, it will help you determine if your
business truly has a chance for success before you start putting
your time and money into it.

A business plan will also help you when the time comes to get
money. While you may work to save up the money you need to
start-up your business, you might also need to obtain a loan.
If you go this route, you will need to present the lending
institution with a business plan in order to prove that you
business is well thought out and has the potential to be a
success.

By following these simple business tips, you will greatly
improve your chances for success when starting a business.
Remember, you can never be too prepared when starting a
business. And, the better base you give your business, the
better your chances of finding success and creating a
sustainable business.

About the Author: Stefan Holm, The Lifestyle Entrepreneur, has
spent 15 years investigating, testing and implementing different
ways to get out of the rat race, live the life you dream of and
get Life Balance, Unlimited Success, Financial Freedom and Peace
of Mind. Now he reveals his secret innovative strategies and
principles to the public. He truly is an underground lifestyle
entrepreneur with proven strategies you need to know. For more
information, sign up for his Best Tips at
www.bestcoachingtips.com or
www.bestcoachingtips.se

Source: www.isnare.com