You see the ads in the paper all the time. "Start your Own Business. Buying into this business will make you rich." And then you roll your eyes with cynicism, and turn the page over. Sure, some business franchises are glorified MLM schemes designed to make the people at the top rich, but buying a business franchise is not a bad thing. In fact, it could make you very wealthy. It just depends on which franchise you buy into. With the economic situation showing no signs of letting up, more and more people are looking at ways to improve their income, but in the business franchise world, the bad guys are giving the good guys a bad rap. So, what are the pros and cons of buying a business franchise? Read on.........
A business without strong systems will fail. It's as simple as that. If you can't predict the flow of money, have no marketing plan, and no sales system, the business will crash, and you may crash with it. A good business franchise will come with tried and tested business systems that help you to produce strong KPIs (Key Performance Indicators). KPIs will give you an idea of how well your business is doing. Not every franchise will have strong business systems, but a true franchise that is not just trying to make the master franchise holder rich will.
Everyone makes mistakes in business. However, a good franchise will have made the mistakes prior to launch, so you can avoid them. There is generally less risks involved in business franchises because everything is laid out for you. All you need to do is follow the rules.
Less Time Building a Brand
Building a reputable brand can take years. People buy into brands that they trust, and investing in a franchise reduces the time and effort that it takes in order to build a good reputation. A good business franchise will have positive reviews, and some media coverage already. This can be used as collateral to sell the products or services.
No room for creativity
Creative types don't tend to do well with franchises because it can stump their creativity. As a franchise owner, you must play by the rules in order to get the necessary results. If you don't like following formulas, then a franchise may not be for you, as there is little room to be a free agent. Avoid. Run. And keep on running.
You Have to Take Time to Know the System
A business franchise is not a quick fix. You have to really invest time and effort into knowing and understanding the systems in order to make it work for you. This may entail long hours to begin with, and attending lots of seminars and conferences.
If the Master Franchise Goes Down, your Business Can Go Down with it
No business is totally risk free. Statistics show that with franchises the success rate is much higher. Always do your due diligence, and check out the credentials of the master franchise owner before you invest.