Are you cut out for success as a franchisee?

Less than seven out of ten... these are the odds of survival for more than three years - never mind achieving success - for a new business start-up in the UK today. According to survival rate statistics of VAT registered businesses released earlier this year by the Small Business Service, the survival rate for UK businesses over a three year period is 68.9 per cent.

That means that almost one third of the UK's entrepreneurs that plough their business loans and nest eggs into new businesses will lose out to poor marketing, bad organisation, wrongly identified markets, inaccurate financial forecasts, management mistakes, shifting economic conditions…or any number of other pitfalls littering the road to building a successful business.

Statistics such as these turn many aspiring entrepreneurs off the idea of starting their own business. However, some 33,500 of the UK's business people have chosen to invest their money into a more proven avenue to business success by purchasing a franchise.

By investing in a franchise, the majority of franchisees will ensure that their business concept is:

* offering a product or service with proven demand * profitable * nationally branded * constructed with professional systems and procedures * set up with realistic financial forecasts * supported by experienced management staff * opted into buying power greater than on its own Their franchise provides them with exclusive access to the brand, systems and training of their franchisor in their protected territory for the lifetime of the agreement, all secured through the investment of an initial franchise fee and payment of an ongoing management service fee (typically a percentage of their turnover - currently averaging 8.1 per cent*).

However, despite all these benefits a franchise does not guarantee success. Franchisors that are committed to building successful franchise networks put a lot of effort into qualifying franchisee candidates. The individuals they are seeking will have the ability to soak up their knowledge and systems and develop a successful business through a mixture of hard work and the proper implementation of their business concept.

So how do you know if you are truly suited to owning and operating your own business? Take a look at the full "Are you cut out for success as a franchisee?" article on the The Franchise Magazine website to find out how franchisors assess franchisee candidates:

www.thefranchisemagazine.net



Are you cut out for success as a franchisee? - To learn more about this author, visit Christian Seaman's Website.

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