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Minimize Risk:
In my
opinion the biggest advantage of buying a franchise business
is that it is generally a lot less risky than starting a new
business. Most studies conclude that over 90% of new
businesses fail within 3 to 5 years. In comparison, U.S.
Dept of Commerce studies have shown that over 92% of
franchised businesses are still operating after 5 years.
With an established and proven operating system already in
place for to follow, franchises can generally offer you a
much greater chance of establishing a successful business.
Training Provided:
When you
buy a franchise most franchisers will automatically require
you to complete a comprehensive training program that can
last any where from 1 to 4 weeks or more. This training is
typically held at the franchisers corporate headquarters or
at the actual franchise location. You will benefit greatly
by being trained to operate your franchise location the same
way that all other franchisees were, dramatically reducing
the learning curve by directly transferring the knowledge
and secrets of running a successful operation.
Franchisor Support:
Providing
on going support to new and established franchisees is
second nature to most franchise companies. Its just common
sense that franchisers will want to support you because it
is in their best interests for you to succeed for a number
of obvious reasons including the chance to generate more
royalty fees and expanding their franchising system. So in
general you can always feel comfortable that most
franchisers will be available to provide support and answer
any questions and concerns you may have about your franchise
business.
Marketing Assistance:
One of
the major advantages of the franchising business model and
the system of multiple standardized units that it creates
(that generally offer the same products and customer
experience) is that it inherently helps market your
franchise location with little or no effort. That is not to
say that as a franchisee you should not attempt to do some
of your own marketing as well. And if you do, the good news
is that many franchisers are often willing and can be very
effective in helping you develop marketing plans for your
own local market.
A
Proven Business Model:
Starting a new business from scratch is
inherently risky. When you
buy a franchise you are generally
buying a proven business model or concept that can be
independently validated as having a track record of
success. Unlike most small businesses started from scratch,
a franchise business can offer the advantages of established
operating systems, services, products, marketing, and brand
name recognition that can save you invaluable time and
money. And most importantly, these advantages can ultimately
increase your chance of becoming a successful small business
owner.
About The Author:
Ray Haiber
is the founder of
Redstone Advertising. He has 10 years experience as
franchise sales consultant as well as a professional small business broker in Arizona. Visit
premierfranchises.com to view and research
franchises for sale through out the USA including
information about how to research and buy a franchise
business. To view higher capital and executive level
master
franchises for sale, visit
www.masterfranchiseforsale.com
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