Franchising is the smart way of doing business and numerous franchise opportunities are available as markets expand and loosen their barriers. A franchise business opportunity allows you to begin with a time tested proven model of doing business, offer help and ongoing training programs, use of their brand name or logos and an established customer base.
A franchise business helps you skip the initial start-up hiccups and provides the energy to run the established business route. Since the franchiser is a continuous partner in the franchise business, he provides all the tools to make the business successful. Once you clarify your goals, interests and the capital you can invest, it is time to identify a franchise business opportunity that you would like to own and set-up.
This stage requires you to do due diligence while selecting a franchise business opportunity. The UFOC of a franchise business is a good starting point to conduct your research. The services of a lawyer, accountant and a banker are essential before you commit yourself to any particular franchise business. A franchise consultant or the Internet are excellent resources to research prospective franchise business opportunities.
An uncertain economy combined with failing employment markets does not make for a secure future. Owning a franchise or a business opportunity may yet give you the financial security that regular jobs do not seem to provide. However before you proceed further you should realize the difference between a franchise and a business opportunity.
The Federal Trade Commission differentiates between a franchise and a business opportunity. A business opportunity can be had after you pay a licensing fee, you are effectively buying the business opportunity outright in your name. You can then, use your expertise, money and ideas to run the business. There are no hard and fast rules to operate the business.
You utilize your capabilities to make it a success and as such there are no royalties to pay and you get to keep all the profit you can generate. Business opportunities are now regulated by the Federal Trade Commission's proposed Business Opportunity Rule drafted in April 2006. On the other hand a franchise is a consistent partnership between the franchiser and the franchisee.
The franchisee operates the franchise according to the franchiser's business methods, pays an initial fee and continuing royalties. There is little room for implementing your own ideas or techniques. Franchise businesses are usually well known brands like Macdonald, Nike, Starbucks, Levi etc. Business opportunities are not that well-known businesses but provide good service and usually carry the stamp of the owner not any brand name. A business opportunity though would satisfy the entrepreneur spirit in you.
Nearly 90% of all business in America are small business opportunities with a work force of less than 20 employees. If a business is independently owned and operated, not dominant in its field and satisfies certain criteria it is classified as a small business.
Small businesses employ half of all private sector employees and generate 60 to 80% new jobs annually. Franchisees claim a share of 3% in the small business opportunities market. A small business franchise need not require a lot starting capital and can even be started from home or an unused garage space.
Most small business franchisees are computer or Internet related work, online tutoring, management help, virtual assistants, and the like. A small business franchise gives you the confidence to step out on your own to secure and build a better future.
Stephanie Sloim, a small business franchise owner of 10 til 2says " As a stay at home mom myself, the fact that as a 10 til 2 franchise owner I am helping other stay at home moms get back in to the work force and in the process I am helping small business fill a very important need.