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Retail Today

Buying a franchise is a quick way to own your own business.

Sydney 1 February 2015. For many people, owning their own business is a major goal on their wish list but it is not easy to start a business that will last for a long time. For any would be entrepreneur, coming up with a good idea that is not already on the market as a product or service is hard. Really hard !

Then there is the cash. Starting any new business takes a lot of money. There is stock, premises, staff, wages and equipment to finance. Banks will not lend without security and their analysts will scrutinise every aspect of the business before considering an advance. If a would be business owner cannot convince experienced bank lending managers that the proposed new business has a chance of survival, then there will be no outside money.

Without a bank loan, new business owners will have to fund the start up and first year or so from their own money. That is hard because money is going out and wages are not coming in. Many new business owners lose their life savings, sometimes their home and they waste a few years of their life on a folly.

A smart way to get into business is to buy a franchise for sale from one of the hundreds of franchise operators who run everything from fast food, money lending, lawn mowing, car hire, furniture, electronic retailing and so much more.

There is often less risk when buying a franchise because in most cases the franchise business has been in operation for many years and has a well known brand name. What franchisors sell new business operators is a territory. The seller provides support considerable support to all franchisees because they operate as a marketing team, often nationwide.

It is hard to start a new business because a single operator does not have a support network. A franchise is a popular way to get into business without the risks involved in sole owner operations as everything from advertising, branding, stock purchasing and accounting packages are included.

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