How to do Research on a Work at Home Business Opportunity
Author: Aaron Jimenez
March 21, 2006
Franchising is one of the premier vehicles for international business expansion. Just about one out of every twelve retail establishments is a franchised business.
Franchising companies and their franchisees add up to one trillion in annual U.S. retail sales. If you are thinking about becoming a franchisee, your options to involve yourself in a productive franchised business are limitless. There are hundreds of franchises to research, but finding one that matches your qualities is not an easy chore.
Taking the proper steps to research the business income opportunity of interest will lead you to find a small business opportunity that matches your lifestyle and personality. Identifying the characteristics that make up a specific franchise and matching them to your own personality is one of the most important areas in your research and the key to having a successful business.
Researching any potential franchise before you buy is critically important if you wish to have a happy and lasting relationship with your franchisor. This is based on the idea that knowing as much as possible about your franchisor will eliminate any ugly surprises that could have otherwise surfaced. Your search for a franchise can get very arduous when you consider the amount of information you learn in such a short instance. Bear in mind the key points throughout the rest of this page to assist in your search for a small business opportunity to match your lifestyle.
It's always fairly helpful to think about your future financial goals when looking for a business income opportunity. Knowing exactly where you want your business opportunity to take you will give you a clear perspective that will help in choosing a business that's right for your lifestyle. Maybe you desire financial freedom. Perhaps you would like to create your own success story. Altogether, picturing your future goals can be very effective in picking the correct franchised business.
The skills you demonstrate are as important in choosing the correct business for sale as any other component. Having the right skills to match the franchise of choice is also critical if your business is to succeed. You must evaluate the skills you can apply here and settle on an opportunity best suited for those talents. Writing up a list of all the talents you can bring to your future business will help narrow down your search by eliminating opportunities that will not benefit you.
Ask yourself the following question: Does your personality fit the franchise? Personality which is probably the most significant factor influencing the success of your future business, should never be overlooked when researching different franchise opportunities. As you go through your list of possible franchise to buy, you will find that certain companies appeal to you more than others. Always go with your instinct. Since every entrepreneur has a different personality, not every business opportunity is perfect for every single individual.
For all of the franchises for sale that operate all year round, there are hundreds that will allow its owners to run a successful business working part-time or on a seasonal basis. For folks with time restrictions, landscaping franchises or vending machine franchises for example, can offer the opportunity to own a profitable business working only on a part-time basis.
Seek a business for sale within your available budget and investment level. The initial fee to own a franchise varies greatly from one company to the next. The initial fee to start a franchise can be as small as a few thousand dollars to over a hundred-thousand dollars. It depends mainly on the brand you're buying the rights to sell and quite a bit on the complexity of the training and support being offered by the franchisor. This will limit your options if you lack the financial resources. It's important to have a realistic cash-flow plan when going into this business. Ideally, you want to have enough capital at your expense to cover the initial fee and any business-related expenses that may surface after the opening of your new business.
Do you love working from the comfort of your own home? Shortly after the World Wide Web emerged, routine communication as we experience it shifted. Small businesses and large corporations continue to change the way they conduct their business through the constructive power of the internet. Because of cyberspace, many businessmen are able to run a successful business from the comfort of their own home. But many businessmen find it difficult to start up a work at home business opportunity for the first time. Too many independent home-based businesses fail around their second year of operation due to poor planning and not Having a tight hold on expenditures. The beauty of franchising is that it is can provide a pre-tested formula for success. you're buying into a business income opportunity that's already proven in the marketplace. It also enables people without previous business experience-a major source of small business failures-to become their own boss. When you examine different franchise opportunities, remember that hundreds of opportunities will allow you to operate a successful franchise from your home or a small office. Running a home business is not for everyone. It is a choice you will have to make and it will be apparent whether a home business is right for you as you progress with your franchise research.
Be truly passionate about the product or service you sell. Your faith and committal to the product that you sell are critical. Many first-time businesspeople will get involved with a franchise system they are not particularly zealous about exclusively for the monetary rewards. If you don't believe in the product or service you're selling, in the long haul, you will more likely than not be unhappy with your business. It's been proven time after time that the happiest franchisees are those who are genuinely happy to sell their services and take pride in running their franchise.
Because your investment to purchase the rights to sell a name brand product can be quite large, you ought to make certain that every cent of your investment is not being put to waste. Be aware of franchise companies that seem too eager to get your signature. Exercise caution when talking to less known franchisors. Investing into a new franchise company may be a bit too risky for most people. It's difficult to even know whether or not a franchise company has a good track record unless they have been around for a long period of time. Study how long their business has been established and test the local territory for brand awareness. You can then rely on your common sense to find out whether or not any big promises they make have any chance of holding up. Finding out whether or not they run a legitimate and successful operation can be accomplished by asking additional questions.
In Franchising, a protected territory protects your franchise from contest by other franchises in the network. In other words, a protected territory gives the franchisee the assurance that a direct competitor won't take their business. It's a security policy awarded to ensure that you have ample prospects to keep your business going. If you are considering becoming a franchisee, make sure to go over this issue before deciding to invest in the franchise business.
Has this franchise company had enough time to build a name in the local community or on a larger scale? An established franchise opportunity will almost always do better than a new one. A franchise company has the ability to enter and dominate a market by means of brand awareness and customer loyalty. Buying into an established franchise is a great way to lower your risk when entering a market and it is really what you want to invest in.
Does the franchise have a popular brand name? Sometimes common sense alone can tell you whether a franchise company is successful or just a passing trend. Joining a franchise company that is a success, like McDonald's, will put a huge hole in your pocket. But that's the price you have to pay to have a customer walk through your doors, only minutes after opening the doors to your business, and order a Big Mac Meal. Hundreds of franchises with a high level of brand awareness exist. Customers are aware of the products and services these businesses sell because they see and hear about them constantly thanks to the marketing plans carried out by the franchisors. These franchise companies experience tremendous success. On the other hand, you can find franchise companies that are less popular. People may not yet know about the services they offer on a large scale but these businesses may in fact offer a great income making opportunity. Although it's true that a recognized brand sales itself, it's not 100% of the franchise's selling force. When you evaluate different franchises, consider those which have a high level of customer appeal but do not discount opportunities that are less popular.
There are many factors that make up a good franchise system. One of the things you want to look for in a franchise system is plans for growth which will benefit the company in the future. The market is always in a state of continuous growth; therefore, a franchise company must also have growth strategies in place to avoid being dominated by competitors. If a franchise opportunity has future growth plans in place, this can also increase the value of your investment.
Are the customers happy? The best information you can get about a franchised business comes from the actual customers of that business. Interviewing customers can provide you with valuable information regarding the popularity of the franchise. You'll hear many good things as well as many negative opinions-all useful information in determining whether or not this is the right business for you to invest in. The key to a profitable business income opportunity is having happy and loyal customers. Obtaining your repeat customers is hard to sum up in one short sentence; however, a group of happy and loyal customers is an indication that a franchise company is performing extremely well in its market-something that you should consider when researching different Franchises.
Your complete understanding of the operation of this business will rely upon the scope of the training and support offered by the franchisor. Training and support should be provided on an ongoing basis by experienced management-this will assure that you have the knowledge, skills and materials needed to be successful.
Are the recent franchisees pleased with their business? Interviewing existing franchisees can leave you with great information about what it's like to run a franchise on a day-to-day basis. Franchise owners say there's no better way to end your research than by spending time in a franchise location to get a true feeling of what managing the business will be like. Spending a week or two in a franchise location definitely will give you an edge in the selection process. After spending time on location, if something tells you that this franchise isn't right for your lifestyle, go with your instinct and continue your search for a better opportunity.
As a franchsie candidate, not only will you have to meet a minumum threshold for available cash-on-hand and financing, but other requirements as well. Every franchise candidate must meet specific conditions in order to qualify for a franchise. The franchisor will ask questions (do you have good people skills, management skills, etc...) to discover whether or not you conform to their standards to become a franchisee. Generally speaking, the intensity of the qualification procedure is a test of the strength of the franchise system as a whole. If the franchise has an easy entry process what does this say about the current franchisees?
Ask yourself what income level you would like to achieve. Aim for an income level that would fit into your lifestyle and seek opportunities that can fulfill the type of income you wish to make. Knowing more or less the amount of money you want to make from a business opportunity will let you know whether or not to proceed with research on a particular company and can save you a lot of valuable time that would otherwise be lost researching the wrong franchise.
About the author: Aaron Jimenez, Franchise Online (http://www.franchiseonline.com/preferred.asp), is committed to helping prospective franchisees find the best possible information on franchising and business opportunities before starting a business.
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