This is a guest post by Bizymoms.
Franchise businesses have gained in popularity over the years with many new and innovative franchise opportunities entering the market. Spectacular advancements in the field of information and communication technologies have also given a boost to the franchise networks and allowed them to expand across geographies.
Particularly for new and aspiring entrepreneurs a franchise may be one of the most viable options to be considered. The prevailing global economic slowdown is forcing many companies to downsize, resulting in pay cuts and job losses for many employees. New jobs are difficult to come by, and in any case many people are unable to achieve job satisfaction at work. In addition to this, there are many stay at home moms who are considering working in order to contribute financially to their households in the current times.
For all new entrepreneurs, a franchise holds out a promise of setting up your independent business with the backup of an established organization to support them. The key advantages of a franchise option for a budding entrepreneur are as follows:
- The total expertise and experience of the franchiser is readily available to the entrepreneur from day one. One does not need to learn the hard way through a maze of mistakes and ‘hit and trial’ methods because the franchiser will pass on everything they have learned in an efficient package to the entrepreneur.
- The franchiser has an established brand name and goodwill that can be capitalized by the franchisee entrepreneur. In any new business there is a long lead period required till the business can establish a reputation for itself. A franchise offers established goodwill and reputation so that you start earning revenues from the start.
- The franchiser provides the technical backup and knowledge. There is a whole team of support professionals who are ready to assist you wherever you face any hurdles or hiccups in the functioning of your business.
- The franchiser takes care of the marketing, advertising and promotional activities at the broader level, while you may have to contribute to it at the local level. Your business gets the automatic benefits of economies of scale that a franchise network enjoys in terms of marketing and advertising.
- Business systems have been usually refined and perfected already by the franchiser. Therefore, it allows the entrepreneur to run his business within the prescribed set of parameters and maximize the efficiencies of business. In other words, the business process is highly simplified and organized which makes it easy for the entrepreneur to run the show smoothly.
Looking at these benefits of a franchise business, it makes pragmatic business sense for budding entrepreneurs to consider various franchise options offered by established franchise brands in the marketplace.
Bio: Bizymoms has been helping women start work at home businesses for over 10 years. Now, with our Franchises for Moms section giving great home business ideas, women can start their own franchise business!
key info presented in a simple way. great posting.
.-= Deb´s last blog ..What your consulting contract should include to protect you =-.
Hey really if anyone thinking about to start a new business. franchise business may be best option for him..because franchise business is more profitable and no risky…
But the disadvantages are:
- you need a lot of money to buy the franchise
- you don’t have a lot of decision power… you are just like a manager but get more money
I do not agree. Franchise in most cases are very limited by main company rules. For instance you open McDonalds and you are said what hamburgers to sell though you see it’s better to sell others
The upside to doing it yourself – you have a lot more freedom when it comes to changing your business model based on the market changes. I’d only go for the franchise model if you have the money to invest and don’t mind losing it.
Yes.Franchise business is the best alternative for beginners and in this period of global economy turn down it is a great alternative.Besides it involves less risk than other forms of business and you also have someone to always guide you ,that is the best part.
Good post – thanks!
Franchising is ONE alternative for wanna-be entrepreneurs, though an unpopular one because the perceived risk is higher than with starting a fresh business.
Whether the ACTUAL risk is higher or not is very debatable!
.-= Matt Chatterley´s last blog ..Starting an online shop – Part 4 – Budgeting =-.
Good post and interesting points. Franchising is a good way to start but I would urge entrepreneurs to be cautious during the next few months as the current climate is quite uncertain. Go for it but please do your homework. Thanks
“Particularly for new and aspiring entrepreneurs a franchise may be one of the most viable options to be considered. The prevailing global economic slowdown is forcing many companies to downsize, resulting in pay cuts and job losses for many employees…Looking at these benefits of a franchise business, it makes pragmatic business sense for budding entrepreneurs to consider various franchise options offered by established franchise brands in the marketplace.”
Setting up your own business is probably a better option than finding employment in companies during this time of economic slowdown. But the question is, is a franchise business the best option? You mentioned all the benefits of franchising business, but you failed to highlight the drawbacks of this option. One of the disadvantages to consider is the hard work it entails. Taking a franchise business means taking more responsibility. Because you are carrying the name of a brand, you are also responsible of meeting the expectations of the customers in order to uphold the other franchises’ reputations. This entails hard work. Aside from this, a franchise is a bit costly. In some cases, you really need a big amount to open up a franchise business.
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franchises are great but many require assets in cash amounts. In this economy many people are eating through their reserves just to stay alive. In a good economy franchises are a great way though. Lots of good support!
Here are the issues:
- you need a lot of money to buy the franchise
- Its hard to find the right ft.
I’m up in canada so here is a great resource to find more:
http://www.canadianfranchisedirectory.ca
usually franchising can be fun coz you have the name then you have the product and all you have to do is build costumer trust
Buying a franchise is a interesting option for anyone wanting a business. Some franchises cost a lot more than what a person starting out can afford. I like tthe franchise idea for maybe like a expanding pizza company or something like that.
Yes.Franchise business is the best alternative for beginners and in this period of global economy turn down it is a great alternative.Besides it involves less risk than other forms of business and you also have someone to always guide you ,that is the best part:):)
Very interesting to read this. One of the easiest business to start with. No risk involved. But some franchises cost lost. Should make a nice decision on choosing it.
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Ooooh you’ve reached a hot button here. The only way you are going to not lose your shirt potentially is that you treat the placement and purchase of your franchise as you were starting your own business from scratch. Do not depend on the franchisor nor their salesmen (exception only: McDonalds). Otherwise – you are much better off spending the time and hard work it takes to get and keep a franchise going on your own online business. Either way you’ll have to bust your tail to ensure your success and your own online business will not have to entail hundreds of thousands of dollars in debt and contracts as would a franchise!
Franchising is the business phenomenon of this century. It’s a good way to get into business, but it can be expensive in terms of up-front costs.
Normally the growth of a new business by a new franchisee will be faster than a non-franchised start-up.
There are a lot of things to consider.
This is really true that franchising have huge numbers of improvements. Every franchise owners wish to be like those who succeed first and was fulfilled with the testimonies of their success. And when it comes to home decorating where your budget is also a concern, considering area rugs at importflooring will be of benefit. In this world of our, we make it a habit to be of big value to our money.
Franchising has always been earning great success. The owners of the companies want to extend their business with the help of other people who also want to be successful. Needless to say that smart are those who have this talent to start the business and make it a point to spread out their products.
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There is some small franchiser that don’t have responsible for number 4 you told above. Consultant agency type of franchise for example. The franchisee should find their own client. The franchiser only provide a good brand name so the client can trust more.
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This was a useful article for anyone considering becoming self-employed, while retaining the backing of an established and reputable company.
One thing you should consider before you invest in any franchise should be to ensure that the company offers you the necessary support and training to be successful in your role.
Also, in the current financial climate some franchises are performing better than others – Web Franchises in particular have proved very resilient with many small businesses looking to the internet as an additional source of revenue.