How to start a franchise - Is Entrepreneurship for You?

Dec. 12, 2010 - PRLog -- There are no guarantees in business. There is simply no way to eliminate all risks of starting a small business - but you can improve your chances of success with good planning, preparation and understanding. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions:

Are you a self-starter? It will be entirely up to you to develop projects, organize your time and follow up the details.

How well do you get along with different personalities? Entrepreneurs need to develop working relationships with various people, including customers, suppliers, staff, bankers and professionals such as lawyers, accountants, or consultants. Can you handle a demanding client, an unreliable vendor or a cranky receptionist if your business interests demand it?

How good are you at making decisions? Small business owners must make decisions constantly - often quickly, independently and under pressure.

Do you have the physical and emotional energy to run a business? Transfer of business can be exciting, but it's also a lot of work. Can you face six or seven 12-hour days each week?
How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization of finances, inventory, schedules and production can help you avoid many pitfalls.

Is the device strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to bear the full responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.

How will the business affect your family? The first years of business start up can be hard on family life. It is important for relatives to know what to expect and for you to be confident that they will support you during this time. It may also be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets risk in the short term.

Why choose a franchise?

If you are concerned about the risks of a new, independent business venture, then franchising may be the best business option for you. Remember that hard work, dedication and sacrifice are key factors for success of any business venture, including franchising.
Start a franchise has two major advantages. It could span 75 different product lines and services. The business model is already created and implemented for an upcoming entrepreneur like you and for a special niche for you.

The first step is to decide what type of service or product that you would really enjoy. Be sure that you want to spend your days engaged in this type of activity because it requires significant investment. For example, according to entrepreneur.com, McDonald's total investment is $ 506K-1.6M
Franchise fee: $ 45K
Ongoing Royalty: 12.5% +
Renewal fee: $ 45K
Your next step is to do some research on your own to see the demand for the product or service. Take a closer look at your competition and see how they do. Competition is good because it helps you to learn more about the market or industry.

Online Business Alliance (website: http://businessallianceonline.com) is a young online franchise business founded in 2006 by Dave Gray. With just a $5, you can get yourself a home based business that has everything for you to start a business: your own hosted websites, sale pages with your selected payment methods, back office, ad tracking, full support and training, advertising tools and materials, ....and much more.

Investigating how this franchise is recognized in the market because the name recognition plays an important role in a franchise business. Has the franchisor has a potential for growth? What is the latest trend in the products or services offered by the franchise? This will make or break your franchise operations.

Make sure that you will get enough support from the franchisor, including staff training and support. Talk to other franchisees who have similar franchise product or service to get a feel for how they do and how helpful the franchisor's relationship with them. Get the negative and positive feedback because you want to make an informed decision. This is a serious matter and you do not want too many surprises.

Take advantage of your work experience as this will help you choose the right franchise business. For example, a dealer franchise can be better for you than a food franchise, if you were a non-manager.

Find a franchise partner if possible. Maybe you can ask a family member or a former employee to join. If you use your previous knowledge, there is a good chance that you will succeed.
Before going to the franchise interview, you should find out the initial capital and if you do not have any money then you probably can seek partnership for a 50/50 or the amount you want.
Buying a franchise magazine and scout out the competition or find a franchise that you can read about and get lots of information, including contact phone number or website to make further inquiries. The research is very important before you start a franchise. Choosing the right franchise is so very important to your success.

Remember to start a small business is always risky, and the chances of success are slim. According to the U.S. Small Business Administration, roughly 50% of small businesses not within the first five years.

It is time to stop worrying about how you will be able to afford to live the rest of your life, and instead take the first step toward securing your financial future.

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Online Business Alliance (http://BusinessAllianceOnline.com) is an affiliate program selling digital products and leasing ad spaces through the unique AdSpace leasing program. Online Business Alliance is the only business that offers a comprehensive stacked income system on the internet.