Free consult & free copy of book

E-Myth – “Why most small businesses don’t work & what to do about it”

Contact Us

Stars

Most 5 star CPA Google reviews in Canada

Read Reviews

Chartered Professional Accountants E Myth

1 Fixed Monthly Fee - Planning | Accounting | Taxes | Consulting

Helping Canadian businesses beat the odds!

Edmonton Business For Sale | Which Franchise Is The Right One


Many people often are under the misconception that all franchises are created equal, and are therefore great options for businesses Edmonton business for sale. While several franchises are great options for business owners, not all franchises are created equally, and not all people are well suited for franchises. Thereís many things that a business owner should take into consideration when considering franchises not just how viable the business will be, but it is a great business for them to operate.

The first thing that people should think of when they are considering purchasing franchises, is if it is going to be a great option for them. Since the value of franchises is in the name recognition as well as in the familiarity consumers have with their products, owning a franchise is great for people who want to continue upholding that name and those products. Not a good business for people who want to add different products, or put their own name on the business. For example, businesses that want to sell hotdogs probably shouldnít own a hamburger restaurant says Edmonton business for sale. They should also know that most franchises come with an operating system, if they want to operate the business in their own way, they might be better off opening their own business, rather than owning a franchise.

When people are looking at franchises as an option to purchase, they should also understand that the people giving them information about the franchise are actually getting paid to sell franchises. They are a salesperson, not a business advisor. They will be getting paid to sell you a business, not getting pai if you succeed in business says Edmonton business for sale. People should keep that is top of mind when they are looking at the various franchise options available. They should resist getting sucked into the feelings of urgency that franchisors often create in order to inspire quick business decisions. People should always take all the time they feel is necessary to make the decision that best for them. If that means they risk missing out on the opportunity, and it probably wasnít the right opportunity for them. People should be able to review the financials, research the company, and take the agreement to professionals such as their accountant to help them review all the information. To make a business decision without all of the proper research, would be irresponsible says Edmonton business for sale.

When talking to the accountant to determine if it is a great business decision, accountant will be able to not only read the franchise agreement and go over the prepared financials to see if it is a viable business, they will also help potential business owner think of all of the variables such as is this going to allow them to earn a decent living, will they be expected to put in lots of time or have they just purchased at job for themselves. People should definitely not miss out on this important step to determine if the business is the right one for them.

When people are considering starting their own business, many people believe that franchises are going to be an easy way for them to find successes Edmonton business for sale. And while statistics do support that franchises can be successful, 50% of all entrepreneurs close the door to their business within five years, but only 14% of franchise owners go out of business in the same time period. However people should not take this to mean that all franchises are good business options. In order to make that determination, they should always do their due diligence and research to find out which business is their best option.

The first thing that people should keep in mind when they are researching franchises, is to compare them. Since there are so many franchises available for purchase, a person should always be ready to review multiple options. They should not only review what itís like to own those businesses but they should also take into consideration royalty fees, the amount of support the franchise offers, if they have to pay extra for things like marketing, radio and TV advertising, websites. By reviewing multiple franchises at the same time, a person can be objective and start figuring out what is most important to them.

The second thing that people should keep in mind when they are considering purchasing franchises is that the people that are getting out the franchise information are getting paid to sell those franchises. They are commission based sale and theyíre making money every time they make a sale they will provide the most attractive information in order to sell the business, not necessarily all the most objective information. Edmonton business for sale says they will almost always create a sense of urgency when talking about the business often saying that a decision has to be made quick because there are other people who are interested in the same opportunity, or that if they donít decide then the opportunity might pass them by. People need to understand that if they are not allowed to take time to consider all their options, and do their research, then itís not as great an opportunity as they are being led to believe.

The third thing that people should think of when they are considering purchasing a franchise is is is going to give them opportunity to create wealth in their life, or have they just bought themselves a job. Often owners time is not fairly accounted for in payroll numbers. This gives a skewed perspective on how viable the business is. A person should be able to take the information to their accountant who can help them determine if the business will function well on the staff, or if theyíre going to have to put in lots of their own time in order to keep it functioning long term.