Tuesday, January 31, 2012

Should You Start A Franchise Business in 2012?

Hi Everyone, We recently asked MyDestination.com (one of our valued ExpatWomen.com sponsors) about why 2012 might be a great year for franchise businesses. If you have ever thought about becoming a franchisee, you might be interested in their response...

Neil Waller:

"The beginning of every year sees many different types of resolutions being made, from quitting smoking, to taking up the gym. Starting your own business is one resolution that is frequently heard, but all too often not followed through. The planning required, financial considerations and the likely success of a new venture, all tend to put people off. However, investing in a franchise business can negate many of these considerations; you can be your own boss and have all the benefits of having your own business, without many of the stresses and strains. Here is why 2012 might be your year for investing in a franchise...

When considering starting a business, the fear of failure leads most people to stay safe and plod along in their current jobs, even though they have a burning entrepreneurial desire. Investing into an already successful and prosperous franchise business will hopefully reduce your stress that the business might fail. If you are already joining a business that is profitable and proven, your franchise should benefit from the authority and reputation of the business you are buying into, significantly reducing the risk of failure.

Entrepreneurs will undoubtedly need much assistance when starting a business, as it is impossible to have adequate experience in all areas of business. When you join a franchise business, you are able to access this experience and expertise needed to grow your franchise, through a centralised support structure that will be in place. As a new franchisee you should be provided with assistance and advice on all areas required to succeed in becoming a successful franchisee (including marketing, advertising, sales and so on).

After all, it is in the interest of the franchise company that as a franchisee you develop your franchise as much as possible. This reduces the risk of making mistakes in developing your franchise, as you will always have a support structure to guide you through the many challenges you will face.

Purchasing a franchise is also significantly cheaper than starting your own business, where overheads often become extortionate very quickly. The main outlay will be the fee you pay for your franchise; this will depend on the size of the franchise that you are buying and what destination it is in. However, for this you should receive all that is necessary to start your franchise, such as a website if it is an online franchise, a restaurant, a shop or maybe some office space. The access to the already mentioned support structure is also invaluable.

In economically uncertain times, franchising does represent a fantastic opportunity to run your own business. The fact that banks and venture capitalists are highly reluctant to invest in start-up businesses, means that you will need to raise most of your business capital yourself these days. So, investing in a franchise could reduce your initial costs, and help to bring benefits to you faster.

Whether you franchise or start solo, I wish you all the very best with whatever you start in 2012! May it be a fabulous year for you.

Warmest regards, Neil Waller, Co-Founder, MyDestination.com."

MyDestination.com is a franchise based network of travel sites, powered by a diverse community of local experts on the ground, providing local knowledge and local deals.

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