home base business

Franchising. Is There Something Better?

By: Michael Klerck

Just as network marketing or multi-level marketing is the “new” business model, so franchising took the world by storm in the fifties and sixties. In fact it was even outlawed in some countries, would you believe.

It is, of course, a traditional business simply backed and sometimes even controlled by a parent company that in most cases offers advertising support (not always, be careful) and a business plan that should include a daily schedule or process of operation that works successfully elsewhere. This is perhaps the only advantage. If you’re store number 120, you want to know that of the other 119, even if 5 have failed, the other 114 are successful, and why. You should have the parent company not only show you why, but more importantly how.

But, here, the advantages stop. Like any traditional business, you will still have all the disadvantages. The parent company might train your staff, but there is still the risk of them stealing and giving you daily hassles, as staff do in any business. Your parent company might have a good system for stock control, but stock will be stock and it will go missing. And then there is the issue of rent. Before the parent company will sign you on and take the bulk of your money, they want to know that you have a lease signed and ready, preferably for a number of years. They don’t want to blow the trumpets about your new store only to have you close down or kicked out after a few months. A lease means being tied to someone legally for that period. Let’s say you pull out, or become, sadly number 6. You owe the letting agent rent for the full period.

Franchises can range from as little as a few thousand dollars, but a good store will probably cost you $150 000, sometimes with stock. Let’s say you have this money and believe in the product, you still have the difficulty deciding whether you want to be involved 14 hours a day, or whether you want to appoint someone else as a manager. Each option has a serious disadvantage. If you’re opting out of your present employment and want something to keep you busy, and 12 hours a day is no problem, you will probably succeed. If not, then the manager option will bring its own problems, as you can imagine. Why would anyone else work as hard as you? Do you know that you can trust them? Can you walk away from the business for three months, go on vacation and find it doing better when you come back? If not, you’re still in for at least a few hours a day, and then the money you dreamed of earning is now diluted by the manager’s salary. If he or she is bad at their job, they’ll cost you; if they’re really good why should they stick around? They probably have their own plans, and your business is free university for them, while they’re being paid!

Even a really cheap, small franchise costs money ‘ let’s say around $15 000. Why put up with all the disadvantages when you can start something from home for far less and build it up over time. There are thousands of good affiliate or network marketing businesses that can be started for far less than even $2000, and with a few hours a week, you can build it up a momentum that allows you to resign for your full-time job.

Try to choose one with little or no stock, as few employees as possible; preferably just you and a family member, perhaps. Make sure the product has an international flavour, that it is reasonably priced and that it is based in an industry that is growing: travel, health for instance. A few hours research on the internet will unearth many. Make sure the company has been around for some time, that the claims of the other affiliates are not too wild: watch out for pictures of sports cars, mansion and pictures of bank statements. Rather side with those that say it is going to be hard work and will cost you a little in the beginning, at least for advertising.

I’d rather invest $1000 in something I can build slowly without any of the disadvantages of franchising mentioned above, than part with $150 000, and on top of that a 3 year lease agreement up front, only to find these disadvantages simply overwhelm me.

A viable home business does work. And added to this is the usual affiliate marketing pay plan that allows for residual income. This simply means that you can get paid over and over again for work done in the past. For example when you assist someone else to join the business and they make sales, or find prospects, you earn from their efforts, for as long as they are alive and working the business. Now that’s exciting. And with this, it is possible to go on vacation for three months (after building the business, of course) and come back to find your team having grown as much as your bank balance.

Franchising? There are some advantages. But why pay someone else for an idea when in almost all networking marketing business models, they will give it to you free? Go find one now.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_8980.shtml

Franchise Business Opportunity For Your Business

By: Roger Morad

If you are a small scaled business, you might look for a opportunity that helps your company to grow. If you are an entrepreneur, you may be looking for the right kind of opportunity, to start off with your own business franchise. Franchise opportunities provide both the parties, including the franchisor and the franchisee, options of financial and or territorial growth. Your specific business needs are taken care of by suitable franchise business opportunities, which help you to gain the right kind of momentum you require for growth.

The right opportunity provides profitable short term gain for both the parties of the franchisor and the franchisee, and there are successful long term franchise business opportunities for you as well. Within a short period, the company that looks for expansion can achieve the same with many franchise units to sell and/or market the products of the franchising company. If the marketing and advertising are reserved for the mother company, then this opportunity may involve the increase in overall sales of the company rather than sector oriented growth, depending on type of franchise it is.

The deal struck between the franchisor and the franchisee involves various rights of operating the parent business, with the same or altered techniques of business practice. The kind of franchise business opportunity that allows both the parties certain amount of freedom, especially to the franchisee, is the kind that is based on a system of mutual trust. The legal bindings to the rights of the parent company are final, and a slight tampering of these may hamper the relationship between the franchisor and the franchisee, and may or may not affect total sales. This is because the trusting of certain autonomy to the franchisee may also result in gaining a lot of regional leverage that your company may require.

To understand the dynamics of such a business system, you should understand the need for the creation of a franchise business opportunity for both the parties. This type of opportunity is created when the franchising company wants to involve smaller units of the same to function semi-independently, generating more profit and market presence. Some parent companies want to strengthen their brand image and therefore go on an aggressive franchise drive. The company that wants to outsell the nearest competitor through market presence and high sales would be a prime candidate in creating an opportunity for small scale entrepreneurs who want to own a business franchise.

If you are an entrepreneur who is interested in franchise, you should be aware of the market potential of companies who want to open franchise units, this will ensure you get capitalize on the best franchise business opportunity that comes your way. You should always do relevant research on the subject of business franchises, and if you understand and follow market trends, you are sure to find the right company that gives you the perfect franchise business opportunity for your personal business franchise venture. Be sure to look out for more articles from Roger that will explain franchise opportunites, franchise information, and alerts you should watch out for before investing into any business.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_9109.shtml