Top Franchises

Under the glossy, glamorizing positive focus on the positive sides of franchise most of the times it’s negative aspects are either not looked into or are simply ignored. As a result many people go into the business without knowing the all-round elements resulting into a sure loss even before they have really started. Most of the time as there is no boss to call upon you as starters you may end up avoiding compact working hours being the owner and the boss yourself. So you need to discipline yourself to work independently at the same time strictly. You should maintain a homogenous work schedule, should read educational materials to strengthen your knowledge and capabilities. Those of you come from a corporate background have the habit of working for 8 hours and then just putting their work away. But when you run your own business you usually have to work more hours and even if necessary work on weekends. Lots of people have unrealistic expectations regarding the funds required to start the business but the franchiser will review your financial qualifications under the evaluation of a questionnaire before they send you any further information. If you lack the necessary start-up fund and can’t come up with adequate financing you may receive a letter explaining that you are financially unqualified. Franchises never provide direct financing. Most of the entrepreneurs wrongly assume that the SBA will provide 100% financing based on their good ideas but if you are without any financing that reflects on your poor management of the finance which the SBA take into consideration. You only qualify financially when you provide 50-60% of the initial investment yourself which you can draw from a home equity loan which are easier to pay back.

All you entrepreneurs who are having plans of hitting the ground for the first time may be having second thoughts before investing actually into the franchise sector. Here is a sort of a market forecast to ease your discomfort and anxiety to some extent. Every year the market researchers at The Entrepreneur sit down to examine the wide world if franchising to locate the overall growth in certain categories and this year the growth was phenomenal. 2005 was the year when franchise became a trend in the market; in fact the franchise unit for almost all companies grew by 11% in the fiscal year 2004-2005. This amazing growth is the result of people viewing franchise as an option to fulfill their entrepreneurial dreams; it is also proving to be a healthy option for already successful and established companies interested in expansion. This all resulted in a $134.2 billion sales in the past fiscal year in the franchise market. Hence the researchers have predicted eight growing categories, which are to sweep the market this year. Some among them are cooking at home and service, e-Bay consignments, kid’s specialty stores etc.

For those of you who don’t really have the scope to step outside the home premise but want to earn a considerable amount as income there is nothing to worry about. You can start a number of franchises just staying at home as well. In the list of the top ten home-based franchises you find a varied range of firms offering you the opportunity and you get quite a vivid range to choose from. For example you can opt for Jani-King who do commercial cleaning on the basis of franchises and charges fees depending on the amount of the initial basis. But to start with them the only thing you will need is a strong customer contact. Macto Tools can also be a good choice; they are distributors of professional hand tools and equipments. They have more than 1200 distributors across

United States

and

Puerto Rico

. With Macto and the other franchisees working under it you will be serving more than 8,25,000 automotive technicians and mechanics worldwide just sitting at home. Even Chem-Dry Carpet Drapery and Upholstery Cleaning can be a choice for you to start your home-based franchise. They specialize in carpet cleaning services; their new and effective cleaning methods have resulted in the pouring in of clients’ everyday. So franchising can never remain to be a problem for you anymore with so many options at your service.

One should start one’s journey to franchise ownership by assessing his or her needs and exploring his or her options research and visit to different franchise trade shows. The first part of your franchise research process should consist of a self-assessment of your personal strengths and weakness, likes and dislikes and the potential resources in your hand. You may try to know what types of businesses excite you, what are your entrepreneurial fantasies, can you deal with long lines of retail customers, or do you want to deal at the business to business level, do you want to work in fresh air or does the dusty inners of a computer attract you and finally will this be a part-time for you or do you plan on this as a full-time career option. Then you need to check your investment resources and list them on a paper. Note all-liquid resources; cash on hand, savings, those even in the piggy bank. You can also think of business loans if necessary. What you require is a confident and healthy piece of capital to start with so that any kind of initial crunches and discrepancies can be dealt even if the first few months are problematic.

These days a number of different franchising options of a completely new nature have hit the market scenario. You can start with your entrepreneurial aspirations with a venture in the mobile business. If you are looking for a unique franchise concept then giving the old school ice cream a new twist may be an intriguing opportunity. You can also help other companies do business better at a business service franchise of yours. You can also test your luck with a wine bar and retail store as entrepreneurs are tapping into

America

’s taste for fine wine. Food franchise may also be a good choice if you offer fast, fresh and healthy options, your personal liking food and cooking may be an extra impetus, as you know fast food gets fresh with healthy alternatives and new franchising opportunities. Entrepreneurs who think that business can never be fun, your idea can completely be overturned a ten-kid friendly franchise. Buying a maintenance franchise can yield a huge profit, as there is a never-ending need for firms which offer cleaning and fix-it services. If you love sports then even a sports franchise may be job satisfying to you. Even tech franchises are on an upsurge- whether your are teaching computers to kids or consulting for big businesses its surely a great opportunity. So times over its better if you quickly be done with choosing your cup of tea and just jump in.

The sole reason that the business of franchising is on an up rise these days is its capability to bring in independent retailers using a single trademark. This adds to benefits like brand awareness, uniformity in meeting the needs of the customers, the efficiencies of group purchasing along with the power of pooled in advertising. For individual owners franchising is advantage as the success of the business program is already market approved and hence reduces risk. The established trademark saves you’re cost of creating and advertising a completely new name, advantages of group purchasing and group advertising adds further profits. You also receive an on going which creates an instant operational expertise without wasting time and energy in the trial and error method. An extra impetus is the expansion that comes naturally. Starting with a successful franchise can be the beginning of a long business process adding new firms one after the other as a very speedy and obvious phenomenon. For some of you starting from the scratch may sound more challenging than buying an existing business, in that case you are suited for franchise ownership. If you don’t have clear idea then this is what you have to do- you as a franchisee have to pay the franchiser an initial fee and ongoing royalties. In return you get the use of a trademark, support from the franchiser and the right to use the franchiser’s system of business and sell their product and services.

Entrepreneurs don’t need huge amounts to start a franchise, what they need is the right source of funding. The best is to get hold of a coach who shall explain how to get your franchise invested by serious outside investors. When one is seeking money for his\her franchise, you should keep in mind that financing a franchise may not be easy but if you know what the lenders really want you will soon be on the right track. It is really tough to find franchises that finance, finding cash may be a problem as well but five common resources can help you. Tips you get from online sites which help you handling real life scenarios while investigating and investing for a franchise. • Certain rules and regulations set by the government ensure that the franchisees rights are ensured while investing. So you are not entirely on your own. • You can consult for legal advice from LLCs and corporations who know the best for you before you buy a franchise. • If you plan to take a loan you should be well aware of the terms and conditions as default cases are hugely common these days. • For the starters who even have before hand management and industry experience the starting capital may be a problem. An understanding and industrious franchiser can be a solution to your problem.

For entrepreneurs countless business opportunities are available these days. For a start those who want to make a mark in business, franchise operation can be a great option. To hit an instant success a number of things have to be kept in mind. When eyeing a franchise your consideration should surely include BRAND-RECOGNITION, MANAGERIAL FREEDOM and FRANCHISE-RELATED EXPENSES.A franchise is a luring option because it has the unique advantage of pre-established brand recognition. This helps in a faster customer base and rising profit margins than an unknown business. However the same brand name can be a source of additional problems. Problems at one particular franchise location can affect the goodwill of all the other branches though that maybe a specific problem (like food contamination).

If you are a complete fresher with no experience

National franchisers provide managerial training and ongoing support to all new franchisees. This will surely appeal to all you business owners who really want to learn how to run a business. Adding to that is the ever constant presence of the national franchiser; you can always seek for uniform guidelines for help in marketing and operating decisions. Such guidelines can both help new owners as well as those who fail to follow those may have to pay fines and also be subjected to loss of franchise rights. Many entrepreneurs may find these rules real restrictive and prefer to start of freely with the creativity of a venture from the scrap

Initial investment

Initial costs can be huge with overwhelming preliminary fees. There maybe additional costs of annual royalty payments and advertising expenses .You entrepreneurs may also have to invest in legal advice help understand your rights and responsibilities under a franchise agreement .In terms of capital investments your franchise fee will be determined by the profits you receive .They can range from $4000-$20,000 and sometimes even up to $50,000. In addition to this the onetime charge that a franchisor may seek for using the business concept, attending their training programs, learning the entire business with an on going royalty may range from 3 to 8 percent.

Some of the other costs associated with franchise include-location costs, equipments signs, opening inventory, and working capital and advertising fees.

1. Starting with the right definition. He suggests both being realistic and thinking in terms of the Return on Investment (ROI) of your capital outlay.

2. Starting with the right opportunity. Elgin says it’s essential to select an opportunity that “matches up well with you, in which you are willing and capable of performing the primary role of the franchisee.” He cites a franchise that cleans public restrooms, contending that this can be an intensely profitable business with a great return on investment, but only if the franchisee can project the excitement and enthusiasm, and not embarrassment, at cleaning urinals for a living.

3. Keeping the investment size reasonable. Elgin suggests researching thoroughly to locate an opportunity where the per-unit investment is reasonable given your net worth and liquid capital available.

4. Reinvesting to achieve your absolute goal. In other words, think big: “If you find an opportunity that fits well for you and has a great return on investment, and you’ve got your first unit up and making a lot of money, you can reach your absolute number goal by acquiring additional units.”

5. Following the system. A common complaint of franchisors is franchisees who mare willing to pay them large franchise fees, then unwilling to follow the advice the franchisor provides.  For best results, pick a good system and then follow it.

6. Capitalizing your business properly. According to Elgin, “there are many ways to capitalize your new business, including using all cash or using some portion of your cash combined with loans or leases to come up with the total investment. Most franchisees use a combination approach.” He cautions would-be franchise owners that the service costs of loans or leases will reduce the amount of money they’ll have for other purposes. Too much leverage, he contends, can be very dangerous.

7. Working with a good accountant. Elgin strongly suggests using a good accountant to help you structure your business entity and ongoing activities in a manner that reduces the tax burden. As you’ll learn, there’s can be a big difference between the money you bring in and the money you can take home.  A good accountant can help minimize the difference.