If your not reaching for your
own Dream, You're working for someone who did....
Why
Own a Franchise? The Benefits of Franchise Ownership
The benefits of owning a franchise vs building your own business from the ground up are many. We've listed a few here that
you should find interesting...
Established Track Record
As
a franchise buyer, you become part of a proven system of operation. Your franchisor offers a concept with products and services
that have sold successfully. You have history to learn from and to help you predict your own future.
Faster Start Up
You have a short learning curve as a franchise owner, because
you have assistance from a franchisor with lots of experience to draw upon in starting other new operations successfully.
You and your personnel often get on-the-job instruction.
Less Risk
Your
chances of failure are lower with a franchise operation, because of the experience, expertise and proven resources that support
you in your business. Franchises succeed at the rate of 90%.
Low
Investment
Most franchises keep their front-end investment demands low, which favors new
entrepreneurs. Moreover, a franchisor will often help new franchisees borrow by facilitating arrangements with lending institutions,
which look positively on lending to franchisees because of their high success rates.
Purchasing Power
The group purchasing power of franchisees can make a big
difference in your costs of doing business. Large buying groups can typically demand significantly lower prices on goods and
services.
Name Recognition and Brand Awareness
With
an established franchise, you get the benefits that occur from marketing an established brand of products or services. With
a new franchise, you can grow and contribute to the creation of the brand.
Business Support
As a franchisee,
you will generally receive valuable, ongoing business support, including site selection, training, recipes, marketing, new
technology and more. Franchisers will assist you in developing a business plan, in learning the best ways to hire and manage
personnel, and in how to profitably manage your facility.
Why Franchising Works
1. Proven concept
2. Less Risk
3. Brand Name Recognition
4. On Going Support Mentoring
5. Group Purchasing Power
6. Camaraderie, Without a Boss
7. Co-op Advertising
8. Building Equity
9. On- going Research and Development
10. Site Selection & Marketing Help
Advantages of Existing Business
1. No waiting on real estate selection
2. Possibly quicker cash flow
3. Existing Clientele
4. Negotiable Price
5. Potential financing by previous owner
Disadvantages of Existing Business
1. Higher cost than start-up
2. Inherit image problems
3. Debt service you may incur may strain profits
4. Price may be to high for value
5. Unethical Business Broker
6. Accuracy of
P & L’s May be in Question
Important Questions to Ask Yourself
1. How bad do I want my own business?
2. What kind of business would I be happy in?
3. What would I be good at?
4. How much money do I have to invest?
Business Financing
Utlizing your IRA and
other creative financing as a
funding source for a new or
existing
business is becoming
more and more popular, and
adds significant advantages
over debt type financing
because
Retirement Funds can
be structured as an Investment
into the business. There are no
corresponding debts
that
increase business overhead.
For a business owner this
means.
1. More funds available for
investment back into your
company
2. Higher success rates from
more available cash
3. Your business success
results in significant tax-
deferred
retirement growth.
