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How do I Choose Franchise and Business Opportunities?

Article Details
  • Written By: Carol Francois
  • Edited By: Heather Bailey
  • Last Modified Date: 19 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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Franchise and business opportunities are available in a wide range of industries, from food services to equipment supplies. These different opportunities appeal to a wide range of entrepreneurs. Deciding which type of business is most suitable for you must be based on your skill set, financial requirements, and support.

A franchise is a business structure that allows someone with limited business knowledge to purchase the rights to use the brand name and products of a well-known company. An initial investment is required, and a portion of all revenue is paid to the franchise company. In turn, the firm provides training, materials, support, and a recognized name brand.

Business opportunities are typically focused on a product or skill that the owner possesses. An independent business can be structured as a sole proprietorship, partnership, or corporation. There are benefits and risks associated with all three business structures. However, the primary purpose of a business is to make money for the owner.

The first thing to think about when choosing between franchise and business opportunities is your skill set. A person who has a profession or skilled trade can use these skills to set up a business. Sales skills are a great benefit to anyone who wants to set up a business. An honest evaluation of your skills, interests, and level of dedication is necessary before starting a business.

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Look at your household financial requirements to determine the minimum income required to sustain your current lifestyle. Explore the amount of funds available to invest in a business opportunity. Think about your personality and what type of work you find the most enjoyable. This information is central to the evaluation of franchise and business opportunities.

Research the standard time line from launch to profitability for different franchise and business opportunities. For example, a standard auto repair garage, located in an idea location, can expect to generate a profit within the first six months of operation. A franchise pizza operation can expect to become profitable within the first two months of operation.

Franchise organizations provide a certain level of training and support to all owners. People who have never owned or operated a business often feel that the support provided in this type of business helps them to overcome the challenges of the first year of business operations. However, these services are not provided for free. There are restrictions on the operations of a franchise that you need to be aware of. Take the time to speak with a wide range of different franchise owners to develop an understanding of the pros and cons of this type of business.

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