Owning a franchise business has many benefits. Franchises give you an established and tested system and structure. Also non franchised businesses are three times more likely to fail. Because of this if you are planning on starting your own home based business you should seriously consider buying a franchise and take any advantage you can get in fulfilling your dream of being your own boss.
What does it take to be a successful franchisee?
Just owning a franchise is not all there is to be successful. The success of a franchise business depends first and foremost on the franchisee. If you want to start your own business you need to assess yourself are you cut out to be a franchise owner. Since franchises offer systems and structure you need to consider are you comfortable working within those constraints. Think about yourself , are you prepared to work with the direction and the concept of the franchise. If you can work under these conditions than owning a franchise may be the best bet for you. If not, then reconsider if the franchise is best for you.
What are the risks of franchise business?
Franchises are not without faults. Some people may think all they need to do is own one and they are on their way of being business owners but that is not the truth. There are things that can go wrong and you must consider before starting your own home based business. Although you may do everything right, there are things that can go wrong with the franchiser which may ultimately cause you out of business.
What are the things that can go wrong with the franchiser?
One of the reasons is that the franchisor may encounter financial problems and then the company that owns all the franchises will not be able to avoid to cease their operations. The reasons for this can be a flaw in their structure. The franchisor may have decided to start the franchise without proper testing or very short track record. These are mistakes than can be very costly in the long run and cause problems which may lead to closing the operation. Franchises are interested in selecting the right people to run the franchises. Because of these many franchises have their selection process to ensure that the people they select to run their franchises are competent enough. Look for a franchise that is not too easy to become a franchisee. If there is not a certain set of criteria and qualifications that are in place to help avoid the risk of bad franchisees than you should think again before joining that franchise.