Home » Articles » Edmonton Business For Sale | Why Purchase A Franchise
Edmonton Business For Sale | Why Purchase A Franchise
There are many reasons why people decide to become entrepreneurs says Edmonton business for sale. When people are becoming entrepreneurs for the first time, they often see buying franchises as an easy way to start their entrepreneurship. The reason is because they believe franchises gives them not only unknown name and a recognized brand, but also tested and loved products and services as well as a ready customer base willing to buy those products. Another reason why entrepreneurs would decide to buy franchises, is because with those franchises often come complete systems or processes and how to not only operate the company, but sell their products and services. Because of this, entrepreneurs often believe that there is lower risk. While some statistics show that this may be the case, industry Canada says that 50% of all businesses close the doors to their business within five years, and only 14% of franchisees go out of business within five years. This may be due to a number of circumstances including unknown brand, customers willing to buy their product, but also the franchise processes that exist alongside the name.
Edmonton business for sale says the first thing that entrepreneurs need to decide when thinking of franchises, is if the franchise system is the right one for them. Many entrepreneurs get into business because they want to do things their own way, and often that they will be able to tweak the franchise products or systems to suit their whims. While some franchises may have a certain customizable aspect to them, not all franchises allow any degree of customization. If a business owner is too interested in customizing the processes, they may come to the conclusion that owning a franchise is not the best option for them. Their best when it may be opening up their own business from the ground up where they can choose all of the options including the products and services to sell and how they are going to do that.
However, if entrepreneurs believe that they like the processes that come with the no brand, they should start researching franchises. Edmontons business for sale recommends that when considering franchises, entrepreneurs donít just look at one franchises, they should compare several. That shouldnít be a problem, since there are so many franchises available for purchase. Whether it is an existing franchise that needs someone to buy the existing location, or if itís opening up brand-new locations, are so many options to choose from. Entrepreneurs should take that wealth of choices and do a lot of research. Things that they should consider in their choice includes considering franchise fees, royalty fees as well as how much support they would get from the franchise orders.
As already important considerations that entrepreneurs need to have in mind when they start looking at franchises to purchase. Edmonton business for sale recommends that once business owners have a franchise or two in mind, their next steps should be contacting their accountant.
there are many reasons why entrepreneurs would be interested in owning franchises says Edmonton business for sale. Not only is owning a franchise away for entrepreneurs to be a part of a brand that has instant recognition, franchises also come up with processes that have been developed and tested on how to operate the business as well as sell their products and services. Since a lot of the hard work has already been done by creating not only a name that consumers are familiar with, they have already created products and services that are known and loved.
Business owners should understand however that buying franchises is just like buying any other business. That means says Edmontons business for sale, that buying franchises is not risk-free and buyer should be aware. Entrepreneurs need to do their due diligence and research each franchises and be sure of what theyíre buying. Using an accountant to help them make that decision can be extremely important. The chartered professional accountants will be able to help with the entrepreneurs test the reasonability of the numbers, as well as help entrepreneurs think of questions to ask and understand what is involved in buying the business. They will be able to review the franchise agreement, let the entrepreneur know if the royalty fees make financial sense, let the entrepreneur know if the ownerís time is account for fairly in the payroll of the company. Edmontons business for sale recommends that entrepreneurs see their accountant early on in the process to check viability of the business before they get much further into the process.
Another way that business owners can research their franchises says Edmontons business for sale is to ask the franchise for financial data for additional locations. The reason for this says Edmonton business for sale, is that franchisors are often giving entrepreneurs financial numbers from the biggest and best locations, but an entrepreneur should get an idea of what itís like to own a variety of locations. If they get financials from bigger shops and smaller shops as well as new locations and long-standing locations, that entrepreneur will be able to get an average of what typical stores close in sales. This will help them and their accountant figure out business viability.
Other ways that owners can do their due diligence, is by talking to the franchise owners themselves. While the franchise or may have taken the entrepreneur to see certain locations and talk to certain owners, entrepreneurs should take upon themselves to talk to the locations they were not taken to. Maybe they are less successful stores, maybe those owners will have more honest or blunt answers Edmonton business for sale says this is highly recommended because candid conversations with existing owners can help or break a decision on this is something they would like to be a part of.
Once business owners have chosen franchises that they feel will be successful and away they will be able to make money, they can start their next steps in becoming business owners.