Running a small franchise can be a great way to have your own business but with a little extra security. However it is worth being aware of some of the pros and cons to this type of business.
For those who have decided that they would like a home business or would just like a new business venture, you may find that setting up a small business franchise could be the answer.
It is however worth bearing in mind that with any type of business there are pros and cons and you need to make sure that you handle your marketing well. Be aware though that not everyone is suited to running a small business and you can never be guaranteed of its success, so choose something that interests you and that you will be good at. You should make sure that you always investigate the market thoroughly first to ensure that there is a demand for what you will be offering and minimal competition.
1 The Positives
Often with a franchise business you will be able to begin trading with a short turnaround time although this will depend upon the nature of the business. You should also find that if you have selected a name that is well known this may give you a good head start. The marketing will in many cases be organised and run by the franchise themselves which may include promotions, discounts etc. If you require a supplier for regular deliveries and good deals then being part of a franchise could help finding someone much easier as you have the reputation of the franchise to rely on.
2 The Negatives
Perhaps one of the main problems with this is that you may not have ultimate control of the business and will often need to meet the rules and regulations given to you by the franchise. It is also worth bearing in mind that you will need to give a percentage amount of your sales over to the franchise which means if you struggle one month you may not make a huge profit.
Should you decide that perhaps the business is not for you and is not as successful as you would have hoped, you could find that you have been tied into an agreement and will need to work this before you are able to leave. As far as marketing is concerned you will not be able to have much say in the types of deals or promotions on offer which can be a problem for some people.Choosing the right franchise business which suits you is key. Help from a business consultant could help define the right choice.
You can also find more information and ideas on my marketing ideas blog.