Sunday, April 22, 2007

Part III: Reasons 17-25
Why Franchises Are Superior To Traditional Small Business Models

This is the final installment in our series on the "25 Reasons Why Franchises Are Superior To Traditional Business Models".

Part III: Reasons 17-25

17. Franchisers also can assist you with site selection. What makes a good site for a service station, may be a poor site for a restaurant or a retail establishment. Certain kinds of businesses do well in shopping malls while others do not. Normally, it is difficult to get into a successful shopping center without the credibility of a successful franchise entity.In terms of site characteristics, should you locate on a near corner or a far corner?

What kind of business should you locate next to? The franchiser has already addressed location problems and knows exactly where to place the franchise for maximum profit potential.

18. You will receive an operating manual. The manual is a convenient tool that will help you familiarize yourself with franchise operations and you can use it to train personnel. One of the biggest challenges in business is hiring and training employees. One of the major weaknesses and breakdowns in many companies is employee training. The operating manual will help you develop and implement a quality personnel training program.

19. Franchisers will help you with planning and forecasting. It is very important to know what to expect in terms of sales and marketing, activity, personnel, stock, equipment and personnel training. It is also important to forecast income so cash needs can be determined in advance. Franchisers also provide you with inventory control forms to help you track stock and other supplies so you will know what to order and when. These forms are excellent control tools that will help you reduce employee pilfering from your supplies.

20. Investing in a franchise will enable you to go into business with less capital, more expertise and more advantages than going into business on your own.

21. Franchises make it easier to get people excited about going into business with you if you lack sufficient capital to go it alone because of their long track record of success and profitability.

22. The vast majority of franchises are well known. Many are household names. Therefore, you have the greatest probability of seeing a return on your investment in the shortest possible period of time.

23. You do not have to be a business genius in order to succeed in a franchise.

24. The franchiser will train you and your personnel how to handle customer complaints and problems in a courteous, professional and business like manner.

25. It is much easier to grow and expand your franchise operation into other locations within the same city or town or establish additional franchises in other localities.

For individuals or groups with limited or no business expertise or experience, franchises are, by far, the best possible commercial enterprise model for going into business for yourself, but not by yourself.