Edmonton Business For Sale | Are Franchises Viable Businesses?
Business ownership is difficult sometimes, with 50% of all businesses going out of business within five years says Edmonton business for sale. However only 14% of franchisees go out of business in five years. That is a significant difference, suggesting that franchises are extremely good options for entrepreneurs. While franchises can be a great option for many entrepreneurs, business owners still need to take many things into consideration when looking at buying that franchises noted see if that is the right decision for them.
When speaking to you franchises about becoming a franchisee, entrepreneurs should take into consideration that the people they are speaking to are paid to sell franchises. They may come across as business advisors, but their bottom line is to make sales. If business owners keep that in mind, they can help them objective when discussing the options. Another tip says Edmontond business for sale is that entrepreneurs should always compare franchises. Being aware of the variety of options and differences between franchises is very crucial for entrepreneurs to keep in mind when making their decision. The royalties be different, the level of commitment required by owners is different from franchise to franchise and there may be hidden fees such as advertising costs and websites. Being aware of this is key to entrepreneurs choosing the right business for them.
Once a business owner has chosen franchises that they are interested in, their next step is to check out the finances. They may not get account prepared financials, or some of the information the franchise gives them might not be complete. What a business owner can do says Edmonton business for sale to combat that is to see a chartered professional accountants. Accounts will be able to help a business owner sift through all of the information that they are given, and see if thereís any information thatís missing. The CPA will also be able to check the financial viability of the business taking into consideration the franchise agreement, lease and common fees as well as franchise fees and royalties. They can bring into focus a clear picture for the entrepreneur decide if this business is their best option. Several accountants have saved many business owners from making the wrong business decision for them.
Entrepreneurs should also do their own research, by speaking to different franchise owners of multiple locations. the franchise or will have opportunities to speak to a number of their owners, the often ones from the biggest or best producing locations. Edmonton business for sale says An entrepreneur should talk to a wide variety of owners either calling or showing up unannounced to get these prompted and most honest answers. Those candid conversations will continue to help an entrepreneur decide if this is something that they should continue doing.
And most importantly, entrepreneurs should decide if owning franchises at all is something thatís in their best interest. The reason is, if an entrepreneur wants to customize too many franchise processes, it may not be the right business for them. If an entrepreneur as to any ideas on what they want to do thatís different from the franchise, maybe the right decision for them is to actually open up their own business from the ground up and be able to run it the way they want says Edmonton businesses for sale.
When entrepreneurs have made the decision that they are instead in buying franchises because they would like to cash in on owning the business that has brand recognition and already existing customer base says Edmonton business for sale. Franchises are great for a lot of reasons including the brand recognition and existing customer base. But also because franchises already have developed systems on how to run their business which is why they are so turn key. It can be more possible with business owners with less business experience to run and operate a successful business simply by following the franchise system. Unfortunately not all franchises are created equal, and business owners need to be aware of all of the systems that come with the franchise before they buy it. If by the business with systems in place is important, entrepreneurs need to look for the right franchises to have those systems in place.
Once an entrepreneur has decided on a franchise to buy, they should create their business plan before buying the franchise. The reason for this says Edmonton business for sale is that entrepreneurs put their business plan together and then realize some critical flaws either in their plan or with the franchise. Even though franchises often say they will help an owner to a business plan after theyíve bought it, then isnít always helpful if it turns out that itís not the best decision for them.
Business owners should also be aware of what kind of loans they are able to secure when they are purchasing franchises. Edmontons business for sale recommends new entrepreneurs who apply for the Canada small business loan be able to get up to $350,000 in order to purchase their business. That may be all thatís needed in order to buy certain franchises, or it may not be enough. Unless entrepreneur already has a proven business track record or collateral thatís about the amount of money they should expect. Knowing that heading into the process, can help steer business owners in which franchises the right option for them.
Another consideration when choosing franchises says Edmonton business for sale is whether or not the ownerís time is accounted for fairly in the payroll numbers from the franchise or. Often business owners time is either not accounted for at all in the payroll numbers, or accounted for conservatively. There franchisee pays themselves a modest salary, and spends much more time deciding whether or not to buy the franchise, business owners need to be aware if there buying the business is going to expect extremely high hours at low pay.