Maybe you’ve thought about starting your own business, but you’re worried that your venture might flop before it gets off the ground. You’re concerned that you’ll have trouble interesting consumers in your product, that inexperience will cause you to make costly mistakes or that your business concept just won’t work.
Consider franchising. A franchise is essentially a replica of an existing business. When you purchase a franchise, you buy the rights to use the parent company’s name and to sell its product or service in exchange for an up-front franchise fee (prices vary between industries) and ongoing royalties, usually 3% to 6% of sales. While buying a franchise does have certain disadvantages, the right franchise can provide a measure of security that is often missing from new ventures. Some of the most important advantages include:
An established brand; Training; Volume purchasing power; Advertising; A proven business model; Accounting and budgeting systems; Other help running your business.
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