Edmonton Business For Sale | How To Obtain A Franchise
Many entrepreneurs believe that buying a franchise will be simpler then opening their own businesses Edmonton business for sale. And while thereís many benefits to owning a franchise, thereís also benefits to owning a business that is not a franchise. Deciphering between which option is best for each business owner is a decision that requires a lot of research and a lot of help. Thereís many things that entrepreneurs should consider when they are making the decision either to open their own business, or to have a franchise. While many people think that a franchise is risk-free, there are risks. Although some stats show that there is less risk. For example, industry Canada says that 50% of all business owners go out of business in the first five years of business ownership, but only 14% of business owners of franchises go out of business in the same amount of time. This may be because franchises already have a recognized brand as well as customer base, and it may also be because franchises have developed processes to help business owners operate a business as well as produce the products and services that their customer base want.
When looking at all of the franchises that are for sale, Edmonton business processes there are hundreds of them, an entrepreneur needs to consider at least three of them. This will help a business owner take a look at all of the varieties of processes that a franchise has as well as the different royalty fee options and what is involved in the franchise. This can help an entrepreneur the objective and be able to articulate whatís important for them. Once a business owner has figured out what franchise interests them the most, their next step says Edmonton business for sale is going to talk to those franchise owners. An entrepreneur should call or go into a location and talk to the owners and find out their views of what itís like to own that franchise. Entrepreneurs should get a variety of stores including stores that have been open a long time stores that have just recently opened, big stores and little stores. This will be so that entrepreneurs get a really good sense of what itís like to own a store and if they are interested in pursuing the option further.
Once they have decided theyíre going to talk to the franchise, entrepreneurs should also be aware that the people that they will be talking to about purchasing a franchise, are not business advisors who are looking to make the best decision for that business owner, they are commission based sales people who are looking to make a sale. They may omit certain information, paint the franchise in the best possible light, and Edmonton business for sale says sometimes they will give incomplete financials in order to give an entrepreneur the best picture of the franchise ever. The entrepreneur to figure out the truth in what the franchise is saying.
There are many reasons why franchises are an attractive option for entrepreneurs, one of those reasons may be that they seem to have a higher success rate. Industry Canada says that out of all of the businesses that opened up, 50% go out of business within five years, but only 14% of entrepreneurs who why franchises go out of business in the same amount of time. This may be because franchises are a recognized brand that already has market share, customers ready and willing to buy, and processes that can help entrepreneurs operate their business. However operating franchise comes at a price says Edmonton business for sale. Specifically the royalty fee. In order to have a recognized business, entrepreneurs will have to pay a monthly fee in order to use that name in those processes.
When entrepreneurs are considering purchasing franchises, they should use the same due diligence that they would for any other business. Keeping in mind that the franchise they are talking to are being paid to sell them that franchise. Edmonton business for sale recommends that entrepreneurs keep in mind that these paid salespeople will be painting the franchise in the best possible light and may omit important information, or give a false sense of urgency to get the entrepreneur to make a snap decision. Entrepreneurs should be steadfast in their search for the right answers, and take all the time the needs to make the right business decision.
One of the ways they can arrive at this right decision for them is take the information given to them by the franchise and take it to their accountant. The accountant will be able to review all of the documents and figure out if it is a viable business, one that will give them a higher return on investment, or if itís not worth the risk. Edmonton business for sale says that accountants have a lot of experience working with small businesses and helping them achieve success, that this should be one of the first steps after talking to the franchise.
Another step that entrepreneurs should take when they are looking at buying franchises, is speaking to a variety of franchise owners. This way entrepreneurs can get a good sense of what itís actually like to own a franchise, and owners that can speak from the heart will be honest and be able to share insights with entrepreneurs. The franchise or will likely take those business owners to see some stores, they will be the best performing stores with owners that will give prompted answers. Entrepreneurs need to get a good sense of what itís like to own a store through speaking to a wide variety of their owners.
If at all during this process, entrepreneurs feel that they would be likely to want to customize to many of the processes that are involved in owning a franchise, they should consider that maybe franchise ownership isnít the right decision for them. Rather than purchasing a franchise and trying to change how itís run, some entrepreneurs are best to open up their own store and not pay royalty fees.