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Resource Center > Article
The Top 10 Reasons to Buy a Business Opportunity or Franchise
6 Jun 15 Posted by: admin
in Start-Up
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Starting your own small business is part of the American Dream, right up there with owning your own home. But getting from the idea stage to reality is fraught, with many hazards along the way. So, explore the top 10 reasons to buy a business opportunity or franchise with us.
Statistics tell the sad tale: 80% of new start-ups fail within the first year and a half. How can you become part of the 20%, one of the success stories enjoying the role of entrepreneur and business owner? Here is a look at two ways to improve your chances.

The Problem of Starting from Scratch
Going it along means you need to figure out what will work in your particular case. You can get input from mentors and ideas from researching the industry. But you still need to do significant amounts of experimenting to figure out how to choose suppliers, where to advertise and what draws customers.
That’s why people who want to own their own business often buy already established businesses or a franchise. When you buy a business or concept that is already established, the bugs have been worked out by others.

Here is a closer look at the advantages that come with buying a franchise or a company with a track record.

5 Reasons to Buy a Franchise

Franchising is big business in the U.S. There are over 760,000 in the U.S. that help the economy by employing over 8.5 million people. There numbers are growing by a healthy 1.6% a year. Here’s why.

#1. You are part of an established network.

Using the power of numbers, you gain access to better rates for advertising and better pricing from suppliers.

#2. You can tap into expert training and resources.

Many franchisees have never owned a business. The franchising company understands this. They provide extensive training that covers operations, hiring, marketing, customer relations and finances.

#3. They make available patented technology, logos and trademarks.

When you buy a franchise, the logo and brand are already known. The trademarks and patents used in the business are fully secured and available for your use. Software and advanced technology is part of the deal.

#4. Your brand is secure and well known.

The franchising corporation has already spent significant amounts marketing the brand so customers are familiar with it. This attracts customers, bring in cash as soon as you start your franchise.

In addition, the founding company enforces standards among all their franchises so that the brand stays respected.

#5. The kinks have been worked out for you.

When you buy a franchise, the winning formula has been tested and tweaked. You benefit from the experience of others.

 The Top 10 Reasons to Buy a Business Opportunity or Franchise

5 Reasons to Buy a Business

The other route to take is buying a going concern. These business opportunities abound because owners want a change of lifestyle, they get sick, family obligations come sup or it’s time to retire.

Here are 5 excellent reasons to consider buying a business that has been around for awhile.

#1. It already has a customer base.

When you invest in a business opportunity, provided you’ve done your research, you will have a built-in set of customers. When you start a business from scratch, attracting customers takes time, meaning more money is going out than is coming in. With an established company, you simply carry on, taking in money right from the start.

#2. The financing end is smoother.

When you buy a business that has a solid financial track record, you will find it much easier getting a loan from a bank. Creditors always feel more secure when the company has been in business for a period of time.

#3. You inherit experienced employees.

Recruiting new employees is time consuming and confusing. Until you have the people in place to run the business, it will never gain traction. With trusted employees who already know the business, you can rely on them to keep customers happy and cash flowing in while you learn the ropes.

#4. Your brand is known.

The first owner has marketed the business and gained brand recognition among customers. This means you can start where he left off when it comes to marketing, instead of starting from a position of no brand, no logo and no customers.

#5. The system for running the business is already in place.

The first owner sets up a process that made money. You can carry on with his ideas, techniques and practices, tweaking them as you go.

Starting a business is hard. It takes research, money, skill and commitment. You can enhance your changes of success by tapping into the work already done for you when you buy a franchise or an established company.

Live On Your Own Terms
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