Why Franchise My Business
A business franchise is a quick and easy way to get started in the business world under a previously established brand. If you are interested in owning and operating a business of your own but are weary about starting from scratch and having to pay for expensive advertising and marketing strategies just to get your name on the map, buying a franchise saves you half the hassle. It allows you to take advantage of a known and loved brand and simply build up your own business around it. Customers who already love the brand will come to you without you having to worry about getting your name out there. It is a quick solution to getting started and something you should consider if you are not very savvy in marketing.
The Pros and Cons of Franchising
Franchising has many advantages and disadvantages for you to consider. On the plus side, you are working with an established brand that gives you an instant customer following. It also makes it easier to find staff since they are more likely to want to work for businesses they know. Additionally, you have the support of the franchiser and lower inventory prices since you are dealing with a franchise and not purchasing on behalf of yourself. On the contrary there is less freedom since you have to abide by the conditions and structure of the franchise. You also have to pay royalties for the franchise name as well as coming up with the money to buy the franchise up front, which can make it financially difficult for many people to undertake.
How to Franchise your Own Business
When you are ready to franchise a business of your own, you need to first decide the type of company you are interested in. This can be done by looking at a franchise directory that can give you a list of what’s for sale and in which industry. You then need to consider franchise financing, because even if you have the money to pay for the business up front, you should retain some of your capital to cover operation and equipment costs. You can get franchise finance assistance from your franchiser in many cases, who will have a list of preferred lenders, but you can also look into The US Small Business Administration that offers financing, or non SBA financing from commercial lenders. When your financing is secured and your business for sale is chosen, you are ready to make a business plan and get started.