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Franchising Times are tough and companies are feeling the heat. Businesses are failing and all the hard work you put in to establish a new business goes down the drain. In the end you have negative results. You endeavoured to establish your own business instead of doing jobs for others but you have failed. Is this statement correct ?

No, absolutely not. There is an answer and a positive solution for you. There are agencies which maintain long list of franchises which continue to do good business and are ready to offer a franchise. They need sincere and good hard working people who can build their image and at the same time earn for both the company and themselves.

As there are various types of businesses available, one must carry out proper research before going for a specific franchise. This research and pre planning will ensure your future success as well as the success of your business. These days, the following businesses are doing very well and big names in these fields are offering a franchise facility to reliable individuals and groups. Some of the fields to choose from are:

Restaurant industry: Restaurants do good business in areas which are visited by people for various reasons. For example tourist spots, hilly or good weather areas having beaches etc. Telecom: The cities or locations where lots of business is being carried out or people have less time to enjoy instead they indulge in work and business; these people need good telecom services for their work and business. Clothing industry: Clothing franchise may be obtained in localities with rich people. Branded clothes are expensive and only rich people or people having good money can afford expensive clothes. If clothing franchise is run in poor area, it will result in loss and you will have to close your business in the end. This also extends to the costumes market where you have sites like www.mycostume.co.uk selling party costumes

It is always better to carry out thorough homework and research before selecting a franchise for your future.

.If you're looking into buying a business, find out why it's on the market. This can be a challenge of its own. Is it for sale because it is not successful? Was the seller doing it wrong? Were they doing it right? Was it a bad location, or a good location gone bad? Was the seller just bad at marketing? Is there an illness or retirement? You need to research, research, and research some more. Remember, you are looking into buying their "baby." Don't let their emotional status, or yours, detour you around making a smart judgment.There is a good restaurant franchises report right here.

If you purchase a successful business, it will already have a clientele and financial records showing profits. Still, I would always seek professional help when determining if the business is worth the asking price. Look in your local telephone directory for business appraisers or consultants.

Avoid using an Accountant to appraise a business. A CPAhas to use the bookkeeping to legally appraise the business, and as most of us know, books are not always accurate. By using a professional business appraiser, you'll be able to get past the bookkeeping and into the heart of the business. The cost of a professional business appraiser will depend on the size of the business, how good the financial records are, and simply the amount of work involved with the specific type of business.

There are certain ways to successfully appraise a business, the assets, market, and income approach. With the asset approach, you look at what the assets are worth in today's market. Look first at tangible items like inventory and store fixtures or office furniture. Then add value into non-tangible things like copyrights, patents, and goodwill. With the market approach, you look at what similar businesses sell for in your area. Finally, the income approach is the business's net income before income taxes. Remember, you're buying the cash flow of the business. Also, remember that some businesses are valued higher at certain seasonal times of the year.

After you've settled on the fair value, offer the seller no more than the fair value and include in the deal that the seller will work with you in the business for at least one month. If the seller doesn't want to cooperate, pay attention; there may be a reason.

Only 2 percent of business owners have purchased a franchise business. There are benefits as well as negatives to buying a franchise business. There's always a royalty payment associated with a franchise. You have to pay to get their name and expertise, but it can be equivalent to having entry into places that you couldn't otherwise get into, i.e., shopping malls or busier locations. In addition to being able to get into better locations, a franchise is good because it gives you an opportunity to share in the corporate recourses that could otherwise be too expensive for you.

The downside to a franchise is that you don't have as many independent choices on how to run your business in terms of the product that you're going to sell in your store. You loose a certain amount of your independence. But in reality, if you're in business to make money, then the only effective issue for you is the amount of profit at the end of the month. If you're in it for your personal vanity and you want to have a place that's "your place" and do everything that "you" want when you want to do it, go ahead and take that risk, but don't buy a franchise. Franchises come with their own individual set of rules. Before you sign on the dotted line for a franchise, hire a legal adviser to overlook the contract.

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