1. If you’ve ever considered owning your own business, but didn’t know where to start, you’ve come to the right place. The common denominator among all clients that come to us is, the desire to change. Franchising can offer a solution. Taking on a franchise is an option worth considering for anyone who wants to run a business but doesn’t have a specific business idea or prefers the security provided by an established concept.The right franchise can give you a head start. Instead of setting up a business from scratch, you use a proven business idea. Typically, you trade under the brand name of the business offering you the franchise and they also give you help and support.
Successful franchises have a much lower failure rate than completely new businesses. According to statistics, more than 50% of small independent businesses fail within the first five years. At the same time a study by the US Department of Commerce puts a franchise success at as high as 95%.
Independent business owners often fail because they run out of cash due to the lack of operational experience and planning. In franchises, owners get a proven system with all the documents, training and financial requirements. There are, of course, advantages and disadvantages to each style of business. In general, the advantages of buying a franchise are:
Advantages:
- There is a higher likelihood of success since the business is based on a proven idea. The products, services, and business operations have already been established. You will also benefit from the collective buying power of the franchisor.
- Bankers usually look at successful franchise chains as having a lower risk of repayment default and are more likely to loan money based on that premise.
- You can use a recognized brand name and trademark. Consumers are generally more comfortable purchasing items they are familiar with and working with companies they know and trust.
- Franchise companies usually provide extensive training, management facilities and support (including help setting up the business) to their franchisees in an effort to help them succeed.
- Many times products and services are advertised at a local and national level by the franchise companies. Franchisors often help make a major local impact with a publicized launch of the business.
The Disadvantages are:
- Costs may be higher than you expect. Also, many franchises charge ongoing royalties cutting into the profits of franchisees.
- Franchisors usually require franchisees to follow their instructions to a tee in order to ensure consistency. This limits any creativity on the part of the franchisee.
- Franchisees must be very good at following directions in order to maintain the image and level of service already established. If the franchisee is not capable of running a quality business or does not have proper funding, this could curtail success.
Still not sure if the idea is a good one? Here are some good reasons to pursue your dream of owning a successful business.
- Proven business: Opening a franchise comes with the advantage of knowing that this business has been successful in other locations and the learning curve in operating the business can be virtually eliminated. You will be operating a tried and tested brand with a proven market position.
- Lower risk: Risk of failure is much lower with a franchise than starting a brand new business. There is a much higher likelihood of success if the same business has done well in other areas.
- Established brand: The brand name that comes with the franchise is already recognizable to consumers, without you having to spend money and time in establishing a new brand. The brand awareness provides security and trust to the customers who feels more comfortable in buying products from companies they already know and trust.
- Marketing: The franchisee benefits from advertising or promotion that the franchisor does at the national or local level, without absorbing the cost. The franchisor can also provide input to the franchisee on a local marketing plan. You do not have to worry about the advertising, the costs and other factors in marketing and advertising.
- Initial and ongoing support: Training and support is usually part of the franchise. As the franchisors have a vested interest in how well you do, they have staff dedicated to providing ongoing assitance to franchisees. They have staff dedicated to providing ongoing assistance to francisees. Thus you do not need extensive business experience as you have access to training, advice, assistance, marketing and advertising.
- Exclusive territory: Rights are exclusive for the territory, with no other franchise allowed to open the same franchise in that territory. It reduces your competition and creates a monopoly kind of business for you.
- Ease of funding: Many times obtaining financing for a franchise is easier since the franchise name and reputation are usually recognized by the lenders. Therefore, banks are more likely to fund the franchisee.
- Purchasing power: Relationships with suppliers are already established; Prices are also at significantly lower levels than you could achieve as an independent.
- Pre-purchase information and research: A potential franchisee can make an informed decision because of information that can be obtained prior to purchase. Franchisors will provide the franchisee with certain information including the company’s history, information about their officers, litigation history, audited financial statements, the franchise agreement, and a current list of franchises with owners’ names and contact information.
2. Owning a franchise allows you to finally take the leap towards realising your dreams while providing an established name and brand to back your investment. However, deciding to start your own business is only the first step among many – until now.
We provide you with enough information to gain an understanding of the concept and benefits of investing in a franchise and point towards our products and services that are designed to help the prospective franchise investor make the right choice.
If you are considering a franchise opportunity you will also have some questions, such as:
- Is it the right franchise?
- Will I be able to afford the franchise?
- How much will it cost?
- Can I borrow some of the money and who will lend me the money?
- How much can I make and what is a fair return?
- What are the risks?
- How can I be sure that I have signed the right terms in the franchise agreement?
- And many more questions that one has before he sets off to this exciting journey of taking up a business opportunity.
3. We can help answer these and all of your questions. We offer impartial and professional advice based on many years of practical experience.
4. If you are considering a particular franchise, whether existing or new franchise business, then you will need to obtain a frank and honest appraisal of the offer you have been given. One of our experts will examine your documents and give you a comprehensive report on the franchise that you are considering, including an assessment of the financial information provided.
5. We offer a service unique to any other currently in existence in Cyprus. Take advantage of our service and begin making your franchise dream a reality today! With our expertise your franchise will be a success.
