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This is the best time to invest in yourself and buy a business

Written by: David Dolitsky

Article Overview: Every day we all wake up to more negative news about the economy and the state of the financial market. We turn on the news to listen to the so called experts telling us what to do with our investments. Here is a thought that I would like everyone to consider " Invest in yourself by buying a business". I am not talking about just any business, but more specifically a Franchise business.

This is the best time to invest in yourself and buy a business

Every day we all wake up to more negative news about the economy and the state of the financial market. We turn on the news to listen to the so called experts telling us what to do with our investments. Here is a thought that I would like everyone to consider " Invest in yourself by buying a business". I am not talking about just any business, but more specifically a Franchise business. Let's consider the advantages. The Franchise Industry is regulated by the Federal Trade Commission for over 40+ years and that is one of the biggest reasons why we have not had a large scandal in the Franchise Industry. Franchises have a 95% success rate, which was determined by a study that was conducted by the Department of Commerce. The study looked at start up business both Franchise and non Franchise and showed that after 5 years from the inception of the business 95% of Franchised businesses were still in business and 87% of those were still owned by the same owner, only 18% were still in business of the non Franchised start ups. Imagine investing your hard earned money in something that has a 95% success rate. Imagine also having full control of your destiny and making all the decisions in your financial future. Here are some statistics about the Franchise industry. By 2001, there were 767,483 business establishments in all domestic franchise systems (either owned by franchisors and franchisees), which employed almost 10 million people, with direct output close to $625 billion, and a payroll of $230 billion. Why are Franchises so successful? Because they eliminate the learning curve. When you buy a Franchise, you are buying an existing and a proven business model, where the Franchisor is providing you with the training, support, marketing, trade secrets etc. Franchises give you all the tools to be successful and all you have to do is use those tools. Most people think of Franchises as a fast food concepts, but there are at least 75 industries that currently offer Franchise concepts from different investment levels. Banks, landlords and businesses prefer to deal with Franchises, because they are aware of the success a Franchise has to offer and you are more likely to get a loan from a bank for a Franchise, than you are to get a loan for a non Franchise business. Most banks require a 20% down on an SBA loan. Next time you think about how to invest your money, think about buying a business and investing in yourself. Just think about this: The Franchise Industry slogan is " You are in business for yourself, but not by yourself.

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Article Tags: business establishments, buying a business, federal trade commission, financial future, food concepts, franchise business, franchise concepts, franchise industry, franchise systems, franchised businesses, franchisees, franchisor, franchisors, hard earned money, learning curve, negative news, start up business, start ups, success rate, support marketing



Related Forum Posts
Re: How To Become An Angel Investor - To become an angel investor you need to have enough money to invest in business ventures and have experience that could add value to the venture you invest in.... Skills & Experience:- You should have business and management experience and contacts in your area of expertise. With your business experience you are more likely to be able to make a sensible judgment about whether the company seeking money is likely to succeed. You will also be able to contribute more to the management of the company. If your business experience is limited , the most sensible option would be to seek to invest alongside people who are experienced , in a syndicate......................
What's Your Website / Online Marketing Budget %? - What approximate percentage of your annual advertising or marketing budget do you invest into your website and/or online promotions every year? Do you find that for every dollar you invest you get a dollar back through sales or clients or do you invest in your online ventures to increase the value of your business and for the benefit of existing customers?
Invest IF you CAN make more money - I would definitely reinvest into my business as I know I could use the $1000 wisely enough to at least double that amount in 6 months. At the moment I always insure that my advertising dollars are well spent on avenues that return my investment within 1 year with minimal long term risk if it does not work. However if you could not find an avenue to confidently invest the $1000 into to get your money back or make a profit I would definitely reconsider the decision to invest back into the business.
May try with a business broker - I don't want to question you here but are you sure you want to invest every cent of your net worth into 'starting' a business from scratch? Even franchised businesses go bust and in fact the data the franchisors are going to show you are a bit skewed because they aren't going to include those frnachises that went bust with their original owner losing everything and someone in the right place and right time buys out at pennies on the dollar. Trust me when I tell you, your franchisor will even facilitate these buyouts so as the income producing franchise continues and their stats don't take the hit. It's only the original franchisee that loses so much. Now I don't know what type of franchise you are looking at or even what area, but with the kind of liquidity you already have, you might want to get with a business broker and look at profitable businesses for sale. Sure you pay some goodwill but the risk is so much lower, there's usually owner financing on a portion if not all, and you're not having to invest so much cash during the first year or two just to keep the doors open.
Re: Partnering up - [quote="Evan":2ueek1ra]Hi Som - if you need a good programmer to partner with, what are you bringing to the table? If you have a solid plan and it's going to make money, you should be able to convince a programmer to partner with you if you're going to take care of the business end.[/quote:2ueek1ra] This is a good point Evan! I am in a position to both invest time and resources into this project but I would first want to know what you as a partner can bring to the table apart from the idea. The reason being, and I am not saying this is what you will do, but if I invest all my time, money, and resources into your venture without any investment from your part. How can I be so sure you won't pick up and leave if you realize the project is going sour?


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