Edmonton Business For Sale | Helping Entrepreneurs By Franchises
Many entrepreneurs believe that buying franchises will help increase their chances of success says Edmonton business for sale. And there are statistics that support this may be the case, 50% of all businesses are out of business within five years, but only 14% of franchisees go out of business in the same five years. Buying franchises might be the right option for several entrepreneurs, however the same care and diligence required in buying traditional businesses are the same thatís required for buying a franchise. There are several things that entrepreneurs should consider when they are looking at which franchises to purchase that can help them by then thatís right for them in order for them to be successful in business.
One of the first things that entrepreneurs should consider when looking at various franchises is comparing more than one franchises option. Itís a big mistake that many people make is they find one franchises and they donít investigate any other options. Edmonton business for sale recommends that entrepreneurs always compare options, and since there is many franchises available this is fairly easy. Always have three different franchises to view all the options and be objective. Different things that entrepreneurs can keep in mind when they are considering the various options are royalty fees, level of support from head office, options to customize, level of marketing included in the price. These are just some of the options that business owners can consider.
Entrepreneurs should also keep in mind that the people that are giving them the franchise information are actually paid salespeople. They often present themselves as business advisors, however they are commission based sales and should be regarded as such. That is to say entrepreneurs should understand their job is to sell you a product, and not necessarily give you all of the objective information. Thatís why itís extremely important says Edmonton business for sale that entrepreneurs take the information and get a second opinion. I chartered professional accountants is a great person who can take the information that you are given by the franchise and help entrepreneurs understand all the information. They can read the franchise agreement, look over all the expense categories to see if thereís anything missing, review the lease agreements as well as common fees, help entrepreneurs make sense of the royalty fees as well as the franchise fees and help business owners understand if the payroll is accounted for fairly. The last thing that an entrepreneur would appreciate is finding out that while the business is viable, it would require several hours of the business ownerís time of not being compensated to function.
When entrepreneurs understand whatís involved in buying a franchise, they can get the correct information and professional help to make the best decision. Buying a business should not be something that is considered lightly says Edmonton business for sale, therefore entrepreneurs need all the help they can get in order to buy the perfect business for them.
Many people see franchises as a canít miss business opportunity, however digging through the details says Edmonton businesses for sale they often find out too late that not the business they were expecting. Either high royalty fees, or an nonviable payroll, makes franchises just like any other business, that is buyer has to beware. Even though only 14% of franchisees go out of business in five years compared to the 50% of traditional businesses, if itís not the right franchises for the right entrepreneur, itís still not a good fit. There are several things that business owners should take into consideration when they are buying franchises in order to make sure itís the right fit that can help them be successful in business.
One of the first things that should do when they are debating franchises, is take a look at all of the franchise options that exist. Edmonton business for sale says that there are lots of franchises options, so comparing which franchises options are best should be fairly easy. Entrepreneurs should consider many factors and that they should be objective. Other than considering business they would be happy to own and run, owners should also consider things like royalty fees, any additional costs to buy into the marketing programs, and what options, if any are optional in the business. Some franchises such as Tim Hortons or McDonaldís has an extremely low amount of what is customizable in that business, however some franchises are extremely flexible in the variety of products and services That can be offered. For example, the UPS store can sell pretty much any printed products that they and their clients design.
It is very fair to say that if a business owner wants to customize too many franchise processes, they might not be making the right decision in purchasing a franchise. The reason for that says Edmonton business for sale is that the value of the franchise is that they have already figured out all of the processes in order to run their business. If an entrepreneur isnít interested in using that complete franchise system, they might be better off opening a brand-new business from the ground up that they can choose their own processes and make their own decisions. Franchise ownership is not an option for every business owner and thatís okay.
Once business owners have decided which franchises they are interested in, the next thing that they should do is talk to other franchise owners. While itís true that the franchisor will arrange tours and talks with a variety of owners, chances are itís going to be with their top owners of the most successful stores. While this is great to see the potential, entrepreneurs should also understand all the different levels with the different locations. Googling the various franchises and going to talk to those owners can often get a clear picture of what owning a business is actually going to look like. You may get less prompted answers that are more honest. This way a business owner will be able to get a good average of what it looks like to own a franchise.