subject: Buying A Franchise Business - Is It Right For Entrepreneurs? [print this page] The key question is: Why Should You Buy a Franchise? Buying a franchise can be a wise investment if you select the right franchise that fits you the best.
First of all, there is a greater chance of success in buying a franchise business. It is really the best of both worlds where you own the individual business, but you also receive support from the franchisor in regards to marketing, training and franchise assistance.
Most importantly, the franchise has an established brand, recognizable to the public. Therefore, you already have a consumer base - something starting a new business from scratch can't give you.
While a franchise gives more security from the beginning, new independent businesses are known to have as high as a 90% failure rate, often causing the business owner heavy losses and at times bankruptcy.
When starting a brand new business, the new owner can be overwhelmed with all the aspects of establishing and operating the business. But with purchasing an established franchise, the necessary groundwork has already been done.
With a franchise, you goal will be to grow from an established foundation and expand from there. All the product selection and the marketing have been already developed, leaving you with taking care of the daily operations of the business.
The new franchise owner gains many benefits from the association with the main franchise company. The franchisor offers a great deal of business experience that would take years for the average business person starting a new enterprise on their own. And it's all in the proper balance from management, marketing, and operations.
With the backing from the main company, the new franchise owner can concentrate on putting all his energies into applying the successful formulas given by the established franchise.
New and experienced entrepreneurs will prefer to buy a franchise rather than starting a new business because of the lower risk. Even experienced businessmen will benefit by owning an established franchise and just succeed that much faster.
The already established methods and procedures of a successful franchise company can increase considerably the chances of success for the new business enterprise.
by: Eduardo Dominguez
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