September 14th, 2008 by sugig

For someone who want to start their own business but don’t know what he  or she  should do, franchising can be a great option for you to go into business for yourself. One of the best things about franchising is utilizing a proven system that has demonstrated success. There are several Pro’s to franchising that are fairly self evident. Before you plunk down a large franchise fee you do need to consider some of the drawbacks to doing so. These 10 potential drawbacks should help you in your decision making process.

The main benefit of franchising is because it already has running system which mean we don’t need to make system to make our business running well.

When we want to buy franchise, Be prepared for the expense. Franchising can provide tremendous financial rewards. The up front costs of a quality and in demand franchise can be quite expensive.

We must think about their capital requirement and operation expenses for the 6 months of operation. Why? although they have a system, new business still new business. We need a time to make our customer know about our business. Franchise system just cut that period faster than if start from zero business.

Be prepared for the work/hours required. When you go into business for yourself you are going to find that a 40 hour work week is something of the past. For the beginning of our business, we would need to spend more time and attention. Most new franchise owners find that a more typical work week is around 80+hours per week. This is especially the case if your new franchise is in the retail arena.

Speaking of employees. Employees are going to be an essential part of your success as a another business idea. Employees are also going to consume a large amount of the 80+ hours you spend each week and we need to manage it. From scheduling, payroll, management, training and development to a myriad of other issues, employees will be one of your greatest challenges.

Be prepared for the unexpected. There has never been nor will there ever be a business that does not have to travel over the inevitable speed bump. There will be times when suppliers and vendors are demanding their payments all at the same time. There will be times when your unemployment taxes, sales tax, business and personal income tax all seem to be due at the same time. So we need to prepare our finance and manage our cash flow.

And the last point, we need to read carefully about franchise agreement. Investing our money to buy a franchise is good idea, but we need take more attention when we have under the law’s agreement.