Monday, March 30, 2009

Part 1 - Buying a business? Franchise or Start-Up? Where do I go?

Part 1 - Buying a business? Franchise or Start-Up? Where do I go?

Starting out in business is one of the most difficult decisions one can make in life, unless the economy has forced your hand and you have no other choice. How do you make a decision about what to do? How do I do it? There are a lot of resources out there today, especially from the franchises. So Franchise or Start-up? Neither one in my opinion. Below I will share some of my thoughts about Franchising based on my experience in working with a client.

Don’t take me wrong, I am not saying stay away from Entrepreneurship. Even though I have lived the ups and downs, including depression, near bankruptcy and out of money, I can’t imagine doing anything else. Although I have had a ton of bad experiences, I still love what I do and business is the only way to go in my opinion to find the ultimate balance between your personal life and work life. I fortunately have had the experience of getting into business in several different ways.

I have had the experience of starting a business from scratch. I started one from accident. I started one as a way out of a family business. I have even been involved with the startup of a franchise over the past few years. Starting from scratch, starting by accident and starting a business as a way out is a difficult road. Most Franchisors will tell you that a Franchise is a much better choice than any of the above. Make sure that you are not deceived and told that the Franchise is the easy way into business. Don’t believe everything a Franchisor tells you;

If I have learned one thing from franchising, it is this: Franchisors are in the business of SELLING Franchises. It is that simple.

Considering a franchise? We thought a franchising would be the optimal way to start a business, after all, they are the experts, and they have done this before. My client had 30 years in the industry, established office, experienced management, experienced field personnel and money to make the investment. Ideal candidates for a Franchise concept, right?

Franchising is just a branded concept that has put together the systems for the 4 core functions of a business. When you buy the franchise you will have a system for Marketing, Finance, Operations and Management. What should you expect from a Franchise? Check out Part 2.

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