Small business franchises scare a lot of people. Owning one means taking a risk? Once you understand the concept of that business model a franchise may be the answer for you. If you don’t want to take the risk of creating a company from scratch this business model offers some security.
The first factor you have to take into account is what line of business do you want to go into. There are plenty of opportunities in franchising. The result of your decision will be based on the costs and your passion for a certain industry. To run a business you have to be really interested in what you are doing, every single day.
For example a popular franchise – please make a note that I’m not endorsing this company in any way – is the EmbroidMe business model. This franchise creates custom made clothing/merchandise that is embroidered. Their tag line is, casually dressing the world. Their clothing is suitable for work and play. They are big on promotional merchandise and marketing materials.
Entrepreneur magazine rates it as one of fastest growing franchises.
Their headquarter provides information starting with market research of the area you want to go into to training of your staff to make sure that your franchise becomes successful. They hold your hand every step of the way.
So one of the aspects to consider in your decision making process is whether your headquarter sets you up with a fully organized system as soon as you open your doors for business. There should be a defined model of the way the business is run.
Some other things you should consider before investing cash in small business franchises are:
A percentage of your profits is paid to the franchisor, the franchise owner. You are bound by the franchisee agreement for as long as you are using their name. Most of the time the agreement details paying royalties and other related fees.
Often franchisee’s come from corporate careers where they are held back by company policies which restrict their earnings. Owning their own company gets rid of that limitation and their personal/business income shows it. By visiting facebook small business you can get more ideas.
It also helps when you believe in the product or service that the franchise network delivers. If you don’t enjoy hospitality, a Subway franchise is probably not for you. A personality test, for example Myers Briggs, or aptitude test similar to what major corporations like P&G are using, will help you discover hidden talents.
You should call the small business franchisor to get earnings projections. Also they should give you a list of its franchisees that you can talk to. Some franchise owners may restrict your choice of territory, suppliers, etc.
Small business franchises are not for everyone as cost can be a factor. But for the one new to business ownership it might be the answer. While this information is just the tip of the iceberg you can get more information from the American association of franchisees.
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