Edmonton Business For Sale | Why Should Entrepreneurs By Franchises
Many entrepreneurs believe that buying franchises is a risk-free way to become a business owner says Edmonton business for sale. While there are some statistics to support that franchises have a higher degree of success in business: 50% of all business owners closing the doors to their business in five years, and 14% of entrepreneurs who over franchises close their doors in five years. There may be a variety of reasons why franchises go out of business less often, however entrepreneurs should keep in mind that 14% is still a very high number, far from risk-free. Any entrepreneur who is going to go into business for themselves will have risks involved in being an entrepreneur. Keeping that in mind, people may decide to buy franchises for a number of reasons including increased success rate, purchasing a well known brand, and having the systems how to run the business in place already.
When entrepreneurs are considering purchasing a franchise, they need to understand that it is never too early to bring information to their accountant. Their accountant will be able to look at all of the information that the franchise has given them, and help the entrepreneur make sense of it says Edmonton business for sale. They will be able to determine if all the information makes sense to buy, or if the return on investment is not significant enough. Accountants have a lot of experience in helping small businesses succeed, they are great resource to help decide if the business opportunity is the right one for them.
Entrepreneurs should also take into consideration that they should do their business plan before they sign with a franchisor. The reason for this is because the business plan can help them determine how to go about purchasing that business, including getting financing. It would be terrible if the entrepreneur signed up with a franchise, paid the money, and then was turned down for their financing. Edmontons business for sale said business plan should only take an entrepreneur a few hours in order to help them decide if this is the right move at the right time. If an entrepreneur does not have the money to buy the business themselves, and donít have a proven business track record or collateral, they may be limited to getting financing from the Canada small business loan instead of a traditional bank. The Canada small business loan is a great opportunity for entrepreneurs, but will only give them $350,000 at most for their purchase. While this may be perfect for some franchises, it will be enough for others. By knowing what finances are available to them says Edmonton business for sale, entrepreneurs can decide whether to proceed with purchasing the franchise or if they need to consider different options.
These are just some of the things that entrepreneurs need to consider when they are looking at purchasing a franchise. Owning a franchise can be very rewarding experience for many business owners, and doing it the right way can help set entrepreneurs on the right foot with their business.
Many people believe that franchises are risk-free, failsafe opportunities says Edmontons business for sale. And while most franchises are a great option for many entrepreneurs, thatís not always the case. Entrepreneurs need to do their due diligence and their research in order to determine if franchise ownership is the right option for them, and if it is, what franchise should purchase.
Edmonton business for sale recommends that entrepreneurs take a look at several of the franchise options available. Since there is virtually hundreds available at any given time, it should be fairly easy for an entrepreneur to come up with three considerations. But looking at different franchises and whatís included in different franchise ownership packages including but advertising is included, what processes are included, and what expectations the franchise or has for each entrepreneur, help entrepreneurs decide which franchise is a viable option for them.
Once an entrepreneur has narrowed down the list to one that they are most interested in, the next step that they should take is talking to the franchise. Edmonton business for sale offers words of caution that entrepreneurs need to keep in mind that the people that are offering them the franchise information are paid salespeople, being paid to sell franchises. Even though they may act as business advisors, they are not looking out for the entrepreneurs best interest, and may skew the numbers or try to rush the entrepreneur into making a snap decision. Entrepreneurs need to keep their wits about them, ask for more information whenever needed, and avoid being pressured.
Once they have more information from the franchise, entrepreneurs should seek out independent advice from an account. Chartered professional accountants are very experienced in quenching small business finances, and or an amazing resource for entrepreneurs who are considering which franchise will give them a good return on investment. Accountant will be able to see if thereís financial information missing, asking the franchise for complete year ends and accountant prepared financials as well as financials from different locations in order to get a good idea of what an average store will produce per year. Accountant will also be able to read the franchise agreement, look at the payroll to see if the business owner will be able to make a living wage says Edmonton business for sale, and be able to make fairly realistic determinations if it is a good risk for an entrepreneur or not.
If at any point in the process, an entrepreneur decides that they are interested in customizing to many of the franchise processes, or are second-guessing having to pay the franchise or royalty fees, they may decide that franchise ownership is not for them, and they can bow of the process at any point. Franchise ownership is a great option for many entrepreneurs that can allow them to have great businesses and made wonderful lives. Ensuring that they ask the right questions in order to achieve that goal is important.