Franchise Anyone?

What is keeping you from owning your own successful and highly-profitable business?

It is no secret that business ownership has always been desired and sought-after. Since surges of immigrants starting coming to America over 100 years ago, freedom and liberation was the lifestyle that everyone desired, and business ownership is undoubtedly the best way to achieve that. The fundamentals and benefits are no longer a big secret anymore for the entrepreneur, but the mystery has instead been replaced by the myriad of modern day elements like patents, entities, taxation, merchant services, online marketing and more. Moreover, for any great business, you need a great concept that is going to take this business to great heights. Unless you are one of the very few that can come up and prove a perfect necessity of today’s culture, a very satisfying means of business ownership is utilizing an existing formula that is currently working – I’m not talking about stealing someone’s idea, I’m talking about the entrepreneur’s best form of partnership…franchising.

The benefits of owning a franchise are relatively straightforward; one has the ability to pick up where the franchisor left off, meaning they can take full advantage of all of the mistakes the franchisor has already made. Owning a franchise is not necessarily turn-key, but one will have the knowledge on where to build or set up shop, how to market, who to hire, what other services to utilize and so. This can save a new franchisee tens or even hundreds of thousands of dollars getting their business up and running, and successful. For some business systems, special supplies, equipment or software is necessary, and it certainly makes easier if someone else had already done the research on which is best to use and has already set up a relationship with such vendors; another money saver.  When it comes to marketing, any business owner can tell you that there are a million ways to spend your money, some of which are very effective, while others not so much.  A franchisor with a strong radio, TV or web presence will usually make your business grow that much faster.  All of these elements ultimately help you achieve your first goal as a business owner – to break even or get your return on your investment (ROI).

According to the SBA, 50% of new (regular) businesses will fail in the first year, and 50% of those will fail in the second year.  This gives a “mom and pop” business a 25% chance of success of making through 2 years. Beyond that, many will have to hit the 5‐year mark before they obtain the ROI.  Now compare these numbers to the typical franchise where approximately 85% are still operating after 5 years and many hit the ROI point after 2‐3 years.  Statistically, it is obvious that getting behind a franchise system is the smartest way,  for the right person, to be a successful business owner, but it isn’t right for everyone.  Still for those who are interested in going this route, the task of finding the best‐suited business for them is daunting.  Currently, there are nearly 3,400 franchise concepts represented in the US, and while I cannot claim to know everything about all of them, a franchise consultant can sort out the franchise template and navigate my way through the federally‐regulated franchise documents to assist anyone in making the best decision for themselves.  Now, what are you waiting for?

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