Taking on a small business franchise as the recession eases may be less of an investment and business development risk for you than you think. The initial period of mutual assessment by the franchisor and potential franchisee is vital to both parties. The author explains what each party looks for to ensure a successful business venture.
Taking on a small business franchise as the recession eases may be less of a risk than you think. It is certainly easier in a recession to find the better performers and the strong brands, as well as a product or service with a demand that is still growing and will outlast your long term exit strategy.
The franchise business model can get you established and profitable in a shorter time than other small business ownership options and industry experience is not a requirement. Other benefits of the franchise business model are that the franchisee has the proven marketing and support systems of the franchisor and the contractual process allows for a level of transparency that minimizes the risk of business failure for many of the same reasons that other small business ventures may fail.
There are many traps for the unwary new investor—insufficient startup capital, a lack of general business acumen, not understanding the level of commitment required and its effect on family life, and a failure to be alert to promoters practicing various forms of commercial fraud.
Is a franchise business opportunity right for you? If you can share the passion for the brand with the franchisor, understand the need to build a team following the proven system and procedures and focus on building sales in your territory, then success is likely to be mutual. An honest self evaluation of your potential business skills should come hand in hand with your evaluation of franchise leads. Most franchise companies now have systems to assess the potential, qualified franchisee. They are looking for the best fit just as you are. The franchisor wants to ensure that you are financially sound and highly motivated, with both leadership and management skills. Also, your background, work ethic and personality are all attributes important to the franchisor. This initial period of mutual assessment is vital to both parties.
MatchPoint Franchise Consulting Networkwas founded in 2006 with a mission of helping companies expand their franchise networks and improve their systems. The advice offered freely to franchise buyers by MatchPoint consultants is vital to the buyer in making a better, more prudent, buying decision. The advice offered by our consultants does not make us lawyers; it is there to help the investor with a high quality due diligence process. It is an effective hedge against the misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.
MatchPoint consultants trained by Nigel Mayne know the red flags of fraud in the investment field. It takes the very few promoters that practice business fraud to taint the dream of an investor and their family.
That`s where seeking the independent advice of an expert franchising consultant is prudent and invaluable.
The Franchise Business Model And Its Safeguards
The high failure rate of small businesses within a short period has received much concerned attention in all established markets. This is just one of many strong reasons why the new investor should consider the franchise as a safer way to set up in business for themselves.
A Franchise Or Network Marketing? Nigel Mayne Discusses
Small business entrepreneurs look for an investment opportunity to make it in their own business venture for a number of reasons. Those new to self employment know they need a proven business model. How to steer clear of the unethical practises, moral traps, get rich quick scams and other fraud practised by a few bad apples in any business?
