Top 10 Reasons Why A Franchise is Better Investment
By Manuel V. Siggaoat Jr.

Manny's article Top 10 Reasons Why A Franchise is Better Investment, that i have summarized below, notes that a lot of filiinos, dream "of operating their own business". I did too and I still do. You, my friend, reading this blog site probably dream the same dream

The article , discusses the reasons why people pick a franchise rather than start their own concept:

1. Business 101. - Managing a franchise is a crash course in running a business.

2. Your own Boss. - If you invest in a franchise, even if it’s a business selling food items from a small cart with a total sales force of one employee, being a franchisee will earn you the title of President or CEO of your company.

3. Instant Customers. - With a franchise, all you need is to set up the business, open it, and people will start coming. They are already familiar with your product, your service, your price, and the ambiance of your restaurant franchise before they even enter your establishment

4. Resaleability of the franchise. - A franchise business can usually be resold based on the strength of the brand.

5. Business Consultants at your disposal. - An old saying goes, “those who can, do; those who can’t, teach”. Still, those who can do neither, go into consulting (I know this because I’ve been a consultant for most of my life).

6. Proven Business System. - If you were to put up your own business from scratch, you may end up spending many hours trying to perfect your business systems: how long should I cook the hamburgers? Which supplier offers the best terms? Is my brother-in-law qualified to do my bookkeeping, having spent three semesters mastering Basic Accounting?

7. Pooled National Advertising and Marketing Program. - The success of a franchise business relies heavily on name recognition – that of making products/services a household word.

8. Active Investment. - A franchise is usually not a passive investment. Franchisors typically require their franchisee to be involved in running the business on a day-to-day basis.

9. Purchasing power. - Everything, from equipment to inventory, can be purchased by the franchisee from the franchisor and/or their approved suppliers at “group discount”, which is somewhat like a wholesaler’s price.

10. Greater chances for success, minimized risk of failure. - Franchising has a proven success rate of 95%. The Filipino entrepreneur has learned that instead of putting up their own business from scratch - which historically has a failure rate of 75% within a 5-year period - a better option would be to invest in a franchise, where he minimizes his risk of failure to 6%.

Back to Table of Contents...

:: Bing Tuesday, October 29, 2002 [+] ::
...

Comments: Post a Comment

:: Balisawsaw ::These are just rantings of a Fool.

:: Welcome to Balisawsaw. Pinoy na Pinoy and Proud of it!!!:: Pinoy Time : contact:: Table of Contents::Past Tags

Manny's article Top 10 Reasons Why A Franchise is Better Investment, that i have summarized below, notes that a lot of filiinos, dream "of operating their own business". I did too and I still do. You, my friend, reading this blog site probably dream the same dream

The article , discusses the reasons why people pick a franchise rather than start their own concept:

1. Business 101. - Managing a franchise is a crash course in running a business.

2. Your own Boss. - If you invest in a franchise, even if it’s a business selling food items from a small cart with a total sales force of one employee, being a franchisee will earn you the title of President or CEO of your company.

3. Instant Customers. - With a franchise, all you need is to set up the business, open it, and people will start coming. They are already familiar with your product, your service, your price, and the ambiance of your restaurant franchise before they even enter your establishment

4. Resaleability of the franchise. - A franchise business can usually be resold based on the strength of the brand.

5. Business Consultants at your disposal. - An old saying goes, “those who can, do; those who can’t, teach”. Still, those who can do neither, go into consulting (I know this because I’ve been a consultant for most of my life).

7. Pooled National Advertising and Marketing Program. - The success of a franchise business relies heavily on name recognition – that of making products/services a household word.

8. Active Investment. - A franchise is usually not a passive investment. Franchisors typically require their franchisee to be involved in running the business on a day-to-day basis.

9. Purchasing power. - Everything, from equipment to inventory, can be purchased by the franchisee from the franchisor and/or their approved suppliers at “group discount”, which is somewhat like a wholesaler’s price.