Should You Start a Franchise?
In this down economy, are you thinking of starting a new business? Have you thought about what type of business you want to start? Let's talk about a few things that can help you with this decision.
One of the hardest things about starting a new business is getting it off the ground and setting it up for long term sustainability. We've all heard the statistics that say that 80% of businesses fail in the first couple of years. While these numbers fluctuate depending on who your source is and what the industry is, the general feeling is that most new businesses fail.
There is not just one reason why these new businesses fail. One very common problem is lack of advertising. They just never get enough sales to stay in business. Another is running out of capital. There are other reasons as well, but these are two that are commonly quoted.
So if the numbers are so bad over time, what can you do to improve your chances of surviving?
One way to give yourself a better chance of surviving as a new business is to start as a franchise instead of a brand new business. There are a couple of reasons why this is a good option. First of all, the franchise will teach you how to run their system. They already have a proven track record that will get you started right.
The other benefit of starting your new business from a franchise is that you get instant brand recognition. Think of it this way: you could start your own burger shop and have to build up recognition, or you could get a well-known name immediately like McDonald's, Burger King, etc. and also get all of the advertising that goes with it.
Franchises are found in just about every industry imaginable. You could start in the food, bread, cartridge, clothing, or any other number of industries. This gives you a lot of flexibility as to what kind of business you want to start.
So there you have it. Do you start everything from scratch or do you start a franchise? One is definitely a more expensive option, but you will have a much better chance of long term success.
One of the hardest things about starting a new business is getting it off the ground and setting it up for long term sustainability. We've all heard the statistics that say that 80% of businesses fail in the first couple of years. While these numbers fluctuate depending on who your source is and what the industry is, the general feeling is that most new businesses fail.
There is not just one reason why these new businesses fail. One very common problem is lack of advertising. They just never get enough sales to stay in business. Another is running out of capital. There are other reasons as well, but these are two that are commonly quoted.
So if the numbers are so bad over time, what can you do to improve your chances of surviving?
One way to give yourself a better chance of surviving as a new business is to start as a franchise instead of a brand new business. There are a couple of reasons why this is a good option. First of all, the franchise will teach you how to run their system. They already have a proven track record that will get you started right.
The other benefit of starting your new business from a franchise is that you get instant brand recognition. Think of it this way: you could start your own burger shop and have to build up recognition, or you could get a well-known name immediately like McDonald's, Burger King, etc. and also get all of the advertising that goes with it.
Franchises are found in just about every industry imaginable. You could start in the food, bread, cartridge, clothing, or any other number of industries. This gives you a lot of flexibility as to what kind of business you want to start.
So there you have it. Do you start everything from scratch or do you start a franchise? One is definitely a more expensive option, but you will have a much better chance of long term success.
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For more info and business tips, check out my blog all about how to start a franchise and more.
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