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Limit the risk of starting your business with a franchise

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Starting your own business requires you to master so many skills, but franchises provide a turnkey approach to managing the chaos. Today’s entrepreneurs have to become digital marketing experts, accountants, project managers, and dabble in employment law. While pop culture focuses on successes, the reality is that most small businesses never get off the ground.

It’s just too much to expect from one person to manage all of the intricacies of running a business. If you’ve always wanted to try your hand at entrepreneurship, consider investing your hard-earned savings in a franchise, and get help with every step along the way to prosperity.  

You can finance your investment

There are few investments that you can finance with the bank’s money, but purchasing a franchise is one of them. An individual requesting a loan to invest in the stock market would be turned away from a bank, but buying a top franchise business opportunity appeals to bank loan officers because it’s a predictable model backed by a large investment from a parent company. Being able to finance your investment long-term from a bank makes this investment accessible for the average citizen.

The franchise provides a positive cash flow

Franchising involves opening an independent location of an existing brand. Usually, franchises grow from already-existing businesses with successful business models that are looking to expand without having to run a new location themselves. Ideally, your franchise will earn a profit which can pay off the original investment.

Past a certain tipping point, the business will provide you with a positive cash flow, which is income above and beyond the loan you took out to cover the franchise fee. Beware the high potential cost of royalties and ongoing marketing and support fees. A complicated business model may end up costing you profits.

Consistent training and support

A framework of effective business practices provides franchisees the best chance to succeed. Most top franchises provide intensive training for franchisees to prepare them to handle all aspects of the business, including hiring, marketing, operations, and accounting. But it doesn’t stop there; franchisors provide ongoing support on critical issues to help you tackle any problems you encounter. The commitment to quality in a franchise helps lead to the longevity of the brand, making the investment more secure and predictable for all owners.

Every franchise is unique

If you want to start a new small business and be your own boss, and you’re willing to work hard, franchises offer a proven strategy and an established business model to guide your efforts. Franchisees benefit from national brand recognition and marketing efforts, and typically enjoy collective buying power that lowers prices and limits risk.  

A franchise allows you to invest in a small business that could provide lasting benefits. As with any investment, there are risks. Tax implications vary based on your personal finances and the franchise opportunity. Before making any investment decision, do your research. Consider consulting a professional who can help you interpret the impact of your choice on your future earnings potential.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best.We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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