The Pros and Cons of Buying a Franchise Straight Out of College
The Pros and Cons of Buying a Franchise Straight Out of College
Persuasive cases exist on both sides of the issue, and in order for each individual to make the best personal decision on whether to pursue a franchise opportunity, he or she should take time to evaluate several factors involved in franchise business opportunities. The following are several pros and cons of making the college-to-franchise transition.
The Pros
1) No Experience…No Problem
Because franchises succeed based on a proven system of operation, capitalizing on franchise opportunities requires little to no previous experience. Rather, established franchises provide the tools necessary to make your business profitable, including training manuals, marketing and PR, and full support for your endeavor. Consider, for example, any popular restaurant franchise. The franchise owner does not need to spend time or energy on advertising and marketing, as the parent corporation ensures the development and implementation of marketing strategies. In the same way, the franchise owner does not need to research best business practices to determine how to operate his or her particular store. He or she needs only to follow the tried and true pattern of operation that is already in place.
2) Early Independence with Less Risk
Few things are more gratifying than building a business in which you work for yourself and are able to see and keep the fruits of your labor. With interest in entrepreneurship increasingly on the rise, more and more young professionals are looking for ways to generate an income and create a lifestyle while working for themselves. Because of the systems of success already in place with franchise business opportunities, young entrepreneurs can minimize business start-up risks while maximizing their potential for success.
3) Organizational Support
Today’s young business owners are not alone in navigating the at-times-rough waters of entrepreneurship. Organizations such as the Small Business Administration in the United States (http://www.sba.gov/smallbusinessplanner/index.html) and the Young Entrepreneurs Association in Canada (http://www.yea.ca) provide useful information, tools, and resources to help business owners on the path to success.
As positive as the pros are, however, as with any decision, it is equally important to weigh the cons. When determining whether a business franchise is right for you, consider the following.
The Cons
1) Leadership Skills
As a recent college graduate, you may have extensive by-the-book business knowledge and be able to foresee assets and liabilities without a blink of the eye. But many franchise opportunities also require the ability to lead a staff of people. It is important to ask yourself if you know the principles of hiring and firing, and if you are comfortable managing people even if difficult and stressful situations. Some experts recommend that before you step into the role of employer, you might benefit from first spending some time as an employee, particularly in the franchise industry which you are planning to pursue.
2) Financial Capabilities
Even when it pays off in the long run, up-front franchise financing can be a costly endeavor, and it is not uncommon for franchises to take at least a year or longer to break even. In fact, it is uncommon for them not to. Do you have the resources to fund your franchise venture while still being able to provide for your basic needs such as food and shelter? And, are you willing to stick with your franchise even through any early difficult days and see it through to the profitable days ahead?
3) Industry Interest
As with any business endeavor, to become successful in a franchise business opportunity, you must be committed to persevering for the long haul. Have you done enough research to ensure as much as possible that the franchise you have chosen is one that you will be able to enthusiastically devote yourself to for several years to come? Are you letting your passion dictate the franchise you choose, or are franchise opportunities dictating your passion? To be successful, be sure that it is the former and never the latter.
The franchising market is strong and growing larger by the day. From 2004 to 2005 along, there was an 11% increase in the number of franchise units! Given the incredible growth of this industry, it is natural that it will remain a serious consideration for any young college graduates seeking to reap the benefits of free enterprise. And with the many types of business available, franchise opportunities offer numerous industries to fit with individual interests and talents. Honestly considering the above pros and cons will help you in your decision on whether starting a franchise business straight out of college is right for you.
The Pros and Cons of Buying a Franchise Straight Out of College - To learn more about this author, visit Candice Clem's Website.
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In today’s rapidly changing economy, college graduates realize that embarking on a steady career that will last many years with one company is a reality of the past. More likely than not, college graduates will change jobs multiple times over the course of their professional lives, and job security will be something they only dream of. As a result, more and more young men and women entering the workforce are exploring options outside of the traditional “9-5” job. For the entrepreneurial thinker, buying a franchise will rank high on this list of possibilities. Yet, despite the inarguable success of numerous franchises and countless franchise owners across the country and around the world, is venturing into the franchise business the right choice for a recent college graduate?
Persuasive cases exist on both sides of the issue, and in order for each individual to make the best personal decision on whether to pursue a franchise opportunity, he or she should take time to evaluate several factors involved in franchise business opportunities. The following are several pros and cons of making the college-to-franchise transition.
The Pros
1) No Experience…No Problem
Because franchises succeed based on a proven system of operation, capitalizing on franchise opportunities requires little to no previous experience. Rather, established franchises provide the tools necessary to make your business profitable, including training manuals, marketing and PR, and full support for your endeavor. Consider, for example, any popular restaurant franchise. The franchise owner does not need to spend time or energy on advertising and marketing, as the parent corporation ensures the development and implementation of marketing strategies. In the same way, the franchise owner does not need to research best business practices to determine how to operate his or her particular store. He or she needs only to follow the tried and true pattern of operation that is already in place.
2) Early Independence with Less Risk
Few things are more gratifying than building a business in which you work for yourself and are able to see and keep the fruits of your labor. With interest in entrepreneurship increasingly on the rise, more and more young professionals are looking for ways to generate an income and create a lifestyle while working for themselves. Because of the systems of success already in place with franchise business opportunities, young entrepreneurs can minimize business start-up risks while maximizing their potential for success.
3) Organizational Support
Today’s young business owners are not alone in navigating the at-times-rough waters of entrepreneurship. Organizations such as the Small Business Administration in the United States (http://www.sba.gov/smallbusinessplanner/index.html) and the Young Entrepreneurs Association in Canada (http://www.yea.ca) provide useful information, tools, and resources to help business owners on the path to success.
As positive as the pros are, however, as with any decision, it is equally important to weigh the cons. When determining whether a business franchise is right for you, consider the following.
The Cons
1) Leadership Skills
As a recent college graduate, you may have extensive by-the-book business knowledge and be able to foresee assets and liabilities without a blink of the eye. But many franchise opportunities also require the ability to lead a staff of people. It is important to ask yourself if you know the principles of hiring and firing, and if you are comfortable managing people even if difficult and stressful situations. Some experts recommend that before you step into the role of employer, you might benefit from first spending some time as an employee, particularly in the franchise industry which you are planning to pursue.
2) Financial Capabilities
Even when it pays off in the long run, up-front franchise financing can be a costly endeavor, and it is not uncommon for franchises to take at least a year or longer to break even. In fact, it is uncommon for them not to. Do you have the resources to fund your franchise venture while still being able to provide for your basic needs such as food and shelter? And, are you willing to stick with your franchise even through any early difficult days and see it through to the profitable days ahead?
3) Industry Interest
As with any business endeavor, to become successful in a franchise business opportunity, you must be committed to persevering for the long haul. Have you done enough research to ensure as much as possible that the franchise you have chosen is one that you will be able to enthusiastically devote yourself to for several years to come? Are you letting your passion dictate the franchise you choose, or are franchise opportunities dictating your passion? To be successful, be sure that it is the former and never the latter.
The franchising market is strong and growing larger by the day. From 2004 to 2005 along, there was an 11% increase in the number of franchise units! Given the incredible growth of this industry, it is natural that it will remain a serious consideration for any young college graduates seeking to reap the benefits of free enterprise. And with the many types of business available, franchise opportunities offer numerous industries to fit with individual interests and talents. Honestly considering the above pros and cons will help you in your decision on whether starting a franchise business straight out of college is right for you.
The Pros and Cons of Buying a Franchise Straight Out of College - To learn more about this author, visit Candice Clem's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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