Wednesday, June 23, 2010

Why Franchising Works

Franchising Works
In his book the 'Cashflow Quadrant', successful business practitioner, Robert Kiyosaki, defined categories on how people earned money. The cash flow quadrant identifies are as follows: employed, self-employed, business owners, and investors. Of the four classifications, the business owners and investors are the ones who are most successful financially with the best income potential.

It is very difficult to start up a business. Efforts begin at creating a concept, hiring a good design house for the look and image of the new company. The biggest risk is the cost of capital. For some, this may never happen for fear of taking the first step towards starting their own business. For others, the answer is getting a business franchise.

Why is franchising best?

In most businesses, the standard is: great risk brings greater returns. With today’s economic condition, who wants to risk everything? The fact is, the emergence of business opportunities have opened doors for almost any player in the market. Franchises are being offered left and right.

An established company gives the assurance of less risk and better income potential. With proper supervision and marketing support from the franchisor, the franchisee would have a better chance of success than setting out on a new business venture.

The greatest risk in franchising is finding the best franchise to own. That would be the franchiser with whom you can be confident will give you the best support in terms of operations, product supply, innovation, and marketing.

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