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Starting a business can take many shapes and forms, but it can be challenging to find the perfect business model. For those who don’t have the funds to buy an existing business and don’t want to start from scratch, a franchise might be a great fit for you. Franchises exist in a lot of industries, including business service providers (UPS store), convenience stores (7-11), educational institutes (Mathnasium), real estate (RE/MAX) and many more, according to Incorporate.com. When you buy a franchise, you take advantage of an existing business’ brand, logo, business model and trademarks, but the work of making it profitable will be up to you. Here are considerations for getting started in becoming a franchise owner.
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Consider the Advantages
Starting a franchise comes with a number of built-in advantages, said Farhan Advani, director of marketing at Buy Here Pay Here. Those advantages include standardized financial and accounting systems; supervision and consulting; programs for national and local advertising; consistent packaging, financial assistance and support on choosing a location and operations.
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Look For a Franchise With Existing Success
There are all kinds of franchise opportunities, but the goal is to “capitalize on a successful enterprise,” said Kamyar Shah, COO and founder of Kamyar Shah consultation firm. “Proven sales success can be the first thing you notice when analyzing the franchise you are considering for adoption,” he said.
He encourages research into the market to make sure the franchise “stands the marketplace test.” For example, he said, don’t start a taco stall if there’s no evidence of people enjoying that kind of food.
Find a Brand Fit
Just because a brand may seem well-known or popular doesn’t mean you should rush into franchising it, said Nunzio Ross, CEO and founder of Majesty Coffee. “You have to decide for yourself if you are passionate about this line of work, the products they sell, and the services they offer.” He adds that it’s crucial that the skills, operational procedures and your leadership style are a good fit with the franchise.
Consider the Money
There are several financial aspects to consider when it comes to buying a franchise, said Michael Knight, co-founder and head of marketing at Incorporation Insight, which supports startups and small businesses. He said you’ll want to consider the initial charge — those funds you pay to …….