I assume that as you are reading this you want to “Be Your Own Boss” and as part of your decision making process you are looking into franchise opportunities.
You must, of course, satisfy yourself that you are made of the “right stuff” to be self employed and that you are supported by your family.
You have alternatives, you could:
- start up a business from scratch and follow your dreams;
- buy an existing business;
- buy a franchise.
Each of these choices has its merits and its problems. If you have never run your own business you may have more problems with the first two of your alternatives. You will have a lot to learn. As far as the first alternative is concerned, you will be faced with the risk and cost of developing your business. You will have to go through a learning curve as you work out the right and best way to run the business. Many embark on the course without the necessary knowledge and training – sadly many fail largely because their money runs out before they have mastered the best way to run and exploit the business to a profitable level.
If you decide to buy an existing business you still have the same problems – you do not know how to run the business but, in addition you have the risk that what you thought you were buying has turned out to be somewhat different – it never turns out to be better. You may be given some guidance by the seller but that would not amount to the level of know-how and training which you may need.
How is franchising different? Your franchisor will assume you know nothing, he will train you and assist you in the business and help you after you have become established.
No-one knows for sure exactly how much better off a franchisee is than the other alternatives but based on anecdotal evidence a new franchisee is likely to have far better prospects of success than a new non-franchised business start up. It could be that a new franchisee’s chances of failure are one-sixth to one-eighth of the chance of failure by a non-franchised new business. Why is this you may ask?
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If you chose to buy a franchise, make sure you do it for the right reasons. Your decision must not be swayed by emotion or greed. You must make a considered business decision and be prepared to work hard for your success.
