Franchising – the Risk Free Solution to Starting your Own Business?

Starting a business is slow, expensive and risky. It is a lot of documents, market research, in coordination with concerned agencies, scouting for the right place, and providing a significant amount of money for rent, initial inventory, furniture and appliances.





But today, this idea of ​​starting a business the opportunity to start from scratch or simply a well-known franchise. It 'a fact that many success stories of companies founded infrom zero and the vision of its founders. Starting from scratch, well, if the company can offer something innovative and its products at competitive prices and convenient to sell. It also needs the right business site, to be close to the target market and be able to advertise and so that consumers are aware of their products or services. This may take a long time, a lot of money, and response of the uncertain market.





On the other hand, considering the current aggressiveCompetition in the economy, offers an attractive alternative, a franchise. Franchising is a relatively new concept in business, the entrepreneurial imagination of many people trapped. In non-technical language, simply means creating a branch of a famous company, for which the franchisee pays an agreed amount for the franchisor to use its brand and identity. The franchise fee may vary depending on the size of the customer base of the franchisor, the popularity and future earnings will vary.In addition, the franchisor's track record and business strategy effectively. In recent years, the franchise was so popular that almost all successful companies have at least a couple of franchises. Many have also ventured into franchising abroad.





Despite the fact that large firms require a hefty sum of money as payment for the license, the benefits of franchising outweigh its price. A good franchise system offers a complete package that includes site selection, lease negotiation,Management and staff training and store design in addition to the use of its brand. Also offers assistance in marketing, quality assurance and troubleshooting to ensure that all members follow the same standards. Therefore, the processes are standardized in the retail, quality guaranteed, and customers are assured that their money's worth.





Take the case of one of the most popular and successful franchise:McDonalds. Today McDonald's franchises are everywhere, not only in America but also in many foreign countries. When a customer leaving a McDonald's anywhere in the world, he can expect the same high quality food and service.





This is because one of the main advantages of franchising is that retailers will have access to knowledge and know-how which the franchisor to develop and expand its activities are allowed. Since the adoption of the license 'the same strategy that eventually developed from this knowledge sharing, all maintain a solid business platform. Their standard operating procedures (eg, pricing, marketing and recruiting) have been tested so many mistakes already identified and addressed early. Therefore, the risk that an entrepreneur is starting to take strong that an agreement to reduce independently.





When the marketing andCentralized purchases, leading to economies of scale, which means lower costs and presumably higher profits. In addition, all the franchise stores and supported by aggressive advertising, marketing and promotional programs that benefit managed by the main direction. Franchisor's business plan, operating manuals and market analysis are also available, as well as the exact number needed to finance the new franchise.





Assuming that the franchise will be maintainedafter the initial conditions of the contract may be recovered in a short time. In the other advantages of the franchise, to compensate for the prospect of re-investment would soon be irresistible to any person as-enterprising.





The arrangement is also favorable to the franchisor, because it ensures the profits with the franchise fee alone. The franchise is the centralized management of all but the responsibility for staffing andthe day-to-day operations of each outlet rests on the franchisee. This leaves the central management free to focus on marketing thrusts and product research.





The concept of franchising is important because it gives the franchisee a chance to go into business for himself while enjoying the support and customer base of a mother company. In this arrangement, a safety net is provided for the franchisee’s investment since a good franchisor will certainly want to ensure that its good name in the business is upheld and that the new franchise will be viable for the sake of both parties. Moreover, the concept does not require direct experience from the franchisee. Therefore, it opens up a lot of access to various types of business that he might not have otherwise considered.





Indeed, franchising has become an important concept in business because it has proven that starting a business need not be difficult and risky. In fact, with franchising, it can be a piece of cake.





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