Edmonton Business For Sale | Entrepreneurs Buying Franchises
50% of all businesses go out of business within five years says Edmonton business for sale. However only 14% of franchisees go out of business within the same five years. The reason that franchises might be more viable business options could be because of the brand recognition, it could be because of the already created customer base, it could be because the products and services have been tested and are successful. However because buying a franchise has some increased costs associated with it, business owners should be extremely diligent when considering buying franchises. Franchises can be great businesses, but there is an increased cost to buying and operating them because of the franchise fee and royalty fees. Because there is a real benefit to owning some franchises, business owners should take into consideration that not all franchises are created equally and ensure that they do their due diligence when making the decision on which franchises to buy.
One of the most important things that entrepreneurs can take into consideration when they are considering which franchises to buy, is that there CPA will be an extremely invaluable resource. No matter what franchises they decide to go with, entrepreneurs should always get their accountant to review the financial information as well as the franchise agreement. The reason for this says Edmontons business for sale is that the chartered professional accountant will be able to read the franchise agreement as well as review all of the finances. Theyíll be able to tell if all of the financial information is there or if Sam has been omitted. They may request that an entrepreneur ask for their accountant prepared financials instead of just giving a plain paper statement. This will ensure that they get financials that are complete and accurate which will help the chartered professional accountant get a better idea of if this is a viable business or not. Once the accountant reviews everything, Edmonton business for sale says that they will be able to let the entrepreneur know if this is a great opportunity for them or not.
Other than reviewing the financials and the franchise agreement with their accountant, an entrepreneur can also do their own research and interview other franchise owners. While they might have spoken to some owners and seen some locations, entrepreneurs should get more feedback from more locations to see what the average experience of owning that business is like. Theyíll be able to find that the answers that they get our unprompted and honest.
Once a business owner has done all of their due diligence, and has decided that itís a great business for them, their next step before they signed with the franchise is to create their business plan a business plan can be done simply and easily with only a few hours of thought and can help business owners figure out if this is the right business decision for them, and if they can get financing. Edmonton business for sale says that financing piece is extremely important and entrepreneurs should not leap into purchasing the franchise without knowing if theyíll be able to secure all the financing they need in order to make their business work.
There are several different reasons why entrepreneurs may want to buy franchises says Edmontons business for sale. One of those reasons is that franchises tend to have a higher rate of success in business. The reason for this could be due to a number of factors.
Edmonton business for sale says one of factors that might make owning a franchise less risky is the fact that there is name recognition. One of the reasons why business owners would want to buy franchises is not franchises can be an extremely well-known brand that already has an existing customer base. When people think of well-known brands they think of McDonaldís, Tim Hortons, Maggie. These are all names that inspire thoughts in anyone who hears them. Lots of money has been spent on marketing and on achieving that brand recognition. And that can be purchased by entrepreneurs for franchise fee. That brand recognition can also help that business get customers right away which has a value to it. Getting customers right away enables the business to start selling much sooner then a business that does not have a known name or ready customers.
Another reason why franchises may be more likely to succeed and less likely to fail within the first five years, is that they are already selling a product that people are familiar with. The entrepreneur wonít have to spend any time or advertising on teaching their customers what to expect when it comes to their product or service says Edmonton business for sale. They have a built in recognition that can help them sell products the minute they open their door. Again that recognition comes at a cost in the form of a franchise fee and royalty fee.
There is a third reason why franchises may be more likely to succeed in business then independent businesses says Edmonton business for sale is that in addition to unknown brand, ready customers and a product that has been tested is that franchises also come with complete systems on how to operate their business. They often have unknown way of running the business, training their staff, advertising and marketing,. Itís a very simple way of operating the business, an entrepreneur buys the business and then simply follows the systems. Because these systems are in place have been not only tested, have also been refined and changed over time to ensure that the business owner has maximum success with those systems can help business owners with no experience, or little experience run very successful businesses. There is the cost to purchasing a business that already has those systems in place, but for business owners who want to take the guesswork out of running a business, franchises can be an amazing opportunity that can help them run and own successful businesses well into the future.