So you caught the virus of entrepreneurship and you want to build your busniess but you, but you hesitate from scratch. Buying a franchise can be a good thing for you, but be careful not to fall into the trap of "7 Myths of the franchise."
A franchise, like any other small busniess startup may fail. Success is not based on the franchise name or its size but on the meaning of the franchisee's busniess. So to help you decide if becoming a franchisee is the right decision, we will dispel the myths about 7 franchise.
Myth 1: Getting a loan will not be a problem
While the franchise may have a good reputation or the balance is positive, bankers still reluctant to lend money to start, even if you have good credit. There is a myth that is the next you have to invest 50,000 dollars to become a franchise owner. There are franchise opportunities available to low investment. Beware however of low cost franchises Who ARE often scams.
Myth 2: The competition is void
New franchisees often feel immune to competition in their catchment area on the pretext that they have acquired the right to use a trademark. This does not mean that there is no competition. Certainly you will be alone in your area to work with your franchise. But competition can be positive because it will force you to strengthen your vitality and improve the service you provide. Competition actually offers the possibility of differentiating the eyes of your customers.
Myth 3: Bigger does not always mean being the best
A franchise can be known, but it does not always mean that it offers quality products or high-quality media. A franchise can grow rapidly due to effective marketing, or a policy of aggressive sales with important commissions, but a serious franchise grow sustainably by offering only a good product or service, with coaching for franchisees. The only way to determine the viability of a franchise is to contact franchisees and ask what support they receive from the franchisor. Then compare competing franchises to see how their systems are working - or not working.
Myth 4: I did not need to hire a lawyer or accountant
An accountant or lawyer should always be consulted before signing legal or financial documents. You can usually hire a lawyer to read the terms of the franchise agreement and you put your finger on the problem areas.
Myth 5: A popular product always guarantee success
Safe busniess is one that offers a product or necessary that people either do not have the time service, the desire or the means to make or carry themselves. This is the mix between products, training, coaching on the field, the marketing plan, site selection and how you will follow will be most important to your success action plan to sell latest fashionable product.
Myth 6: Learning to manager men come naturally
Be realistic about your management experience. If you experience so much better, so it's one less thing to worry about. However, if you're like most people, your experience is minimal, you'll need training to effectively manage your future employees. The management is not easy and if it's something you do not like to do, in this case you should consider another franchise opportunity.
Myth 7: With a franchise is a guaranteed success
The creation of any busniess involves risk - even a franchise. Certainly a risk but a calculated risk anyway. Franchises can benefit from a higher than traditional busniesses because they already have a well established reputation and a busniess plan that has proven success rate, but success depends largely on your ability to run a busniess and your entrepreneurial qualities.
A franchise, like any other small busniess startup may fail. Success is not based on the franchise name or its size but on the meaning of the franchisee's busniess. So to help you decide if becoming a franchisee is the right decision, we will dispel the myths about 7 franchise.
Myth 1: Getting a loan will not be a problem
While the franchise may have a good reputation or the balance is positive, bankers still reluctant to lend money to start, even if you have good credit. There is a myth that is the next you have to invest 50,000 dollars to become a franchise owner. There are franchise opportunities available to low investment. Beware however of low cost franchises Who ARE often scams.
Myth 2: The competition is void
New franchisees often feel immune to competition in their catchment area on the pretext that they have acquired the right to use a trademark. This does not mean that there is no competition. Certainly you will be alone in your area to work with your franchise. But competition can be positive because it will force you to strengthen your vitality and improve the service you provide. Competition actually offers the possibility of differentiating the eyes of your customers.
Myth 3: Bigger does not always mean being the best
A franchise can be known, but it does not always mean that it offers quality products or high-quality media. A franchise can grow rapidly due to effective marketing, or a policy of aggressive sales with important commissions, but a serious franchise grow sustainably by offering only a good product or service, with coaching for franchisees. The only way to determine the viability of a franchise is to contact franchisees and ask what support they receive from the franchisor. Then compare competing franchises to see how their systems are working - or not working.
Myth 4: I did not need to hire a lawyer or accountant
An accountant or lawyer should always be consulted before signing legal or financial documents. You can usually hire a lawyer to read the terms of the franchise agreement and you put your finger on the problem areas.
Myth 5: A popular product always guarantee success
Safe busniess is one that offers a product or necessary that people either do not have the time service, the desire or the means to make or carry themselves. This is the mix between products, training, coaching on the field, the marketing plan, site selection and how you will follow will be most important to your success action plan to sell latest fashionable product.
Myth 6: Learning to manager men come naturally
Be realistic about your management experience. If you experience so much better, so it's one less thing to worry about. However, if you're like most people, your experience is minimal, you'll need training to effectively manage your future employees. The management is not easy and if it's something you do not like to do, in this case you should consider another franchise opportunity.
Myth 7: With a franchise is a guaranteed success
The creation of any busniess involves risk - even a franchise. Certainly a risk but a calculated risk anyway. Franchises can benefit from a higher than traditional busniesses because they already have a well established reputation and a busniess plan that has proven success rate, but success depends largely on your ability to run a busniess and your entrepreneurial qualities.
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