Tweet

Franchise Alternative

Written by: Karen Newman

Article Overview: When it comes to self-employment, people often wrestle with the decision until their heads hurt. If you find yourself in that situation, consider the two examples below as you begin to answer the difficult question of "should I be self-employed and what business is right for me?"

Franchise Alternative

When it comes to self-employment, people often wrestle with the decision until their heads hurt. If you find yourself in that situation, consider the two examples below as you begin to answer the difficult question of "should I be self-employed and what business is right for me?" Example: Old Franchise & Traditional Business Model

1. Invested $250,000-$2,500,000

2. Five Years Until Profit

3. 15% Profit or less

4. 16 Hour Work Days As Owner

5. $40k Yr Salary as Owner

6. Teenage Employees

7. Daily Inventory

8. Expensive Rent

9. Pricey Insurance

10. More Taxes

11. Less Freedom

Example: New Internet Business Model

1. Invested $2,500-$25,000

2. Fifteen Days Until Profit

3. 75% Profit or More

4. 3 Hr Work Days As Owner

5. $250k+ Yr Salary as Owner

6. No Employees

7. No Inventory

8. No Rent

9. No Insurance

10. Less Taxes

11. More Freedom

This is an example of why more and more potential entrepreneurs are opting in to the various Internet "franchises" that are available today. The appeal of owning your own thriving Internet business, along with the lower costs and stress levels, is a magnetic draw for many.

The major challenge being faced by people seeking to venture into self-employment then becomes the lack of a business idea. Having a business idea is what distinguishes between an entrepreneur and a small business owner. There are legitimate home-based online business opportunities (i.e. the "New Internet Business Model") available but you have to do your homework. Research proven systems on the Internet, join conference calls and webinars if offered, and most importantly speak directly with someone involved in the venture that has achieved a level of success.

Due diligence, a product that you would find valuable, a community that you can trust, and you are well on your way to becoming one of the many new Internet franchise owners worldwide.

Related Articles
  Buying an Investment Franchise Business Opportunity
  Franchising as an Alternative to an IPO?
  Franchising with all its Success
  About 60% of all franchise opportunities have less than 50 units.
  Why Use a Franchise Consultant?

Article Tags: franchise, legitimate home based business, selfemployed, traditional business



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How To Brand Your Home Business Online

The Neglected Art of Receiving

How To Be A Management Legend

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.