Franchises are Popular Among Entrepreneurs

Franchises are Popular Among Entrepreneurs

Franchises are one of the most popular ways to start a business. In 2005, there were about 850,000 franchises operating in the U.S. alone with approximately 10 million people employed. Sales volume accounted for about 40% of all retail sales at around $1.5 billion. This information is all according to research which was conducted by the International Federation Association and the National Franchise Association.

At the present time, I don't really know if there is any business left that has not tried the franchise. You can find fast food restaurant franchises, cleaning services and even automotive shops. The most popular franchise categories still seem to be the restaurant, deli and sandwich franchises.

Franchises all have a couple of things in common that makes them attractive to potential business owners:
1. Fast start up utilizing a working marketing system;
2. Peace of mind because it has been proven to work already;
3. Exclusive territory (in most cases).

At the same time, there are known disadvantages. For example, many franchise companies don't live up to the standard of support they promised. Some franchises are overly strict with regards to their branding and marketing requirements, which may be disappointing for a creative entrepreneur. One other disadvantage is the work pressure, especially when operating a franchise that requires hiring employees or staff.

The International Franchise Association found that the annual gross income for a typical franchise ranges between $75,000 - $125,000 (before taxes). With an investment level of let's say $250,000 you can expect a payback time of around 3 years. To me, that's too long. It's clear that becoming a franchisee requires enough cash to sustain yourself, and the business, in the first years. It also requires a lot of sustained hard work to get the business off the ground.

If you do not have any money to get your business off the ground, it's better not to start at all. Lack of financial backing, or capital, has been the downfall of many businesses. Careful planning is the key. Planning, combined with a preparedness to live a frugal lifestyle for years to come, is very important.

Do you have what it takes to survive the tough times?

I understand that there are plenty of franchise opportunities with proven track records. Many franchises can generate good income for years to come, if you're willing to put forth the effort. There are many success stories in the franchising industry, which keeps growing even as you read this. For once, duplicating and being a copycat can pay rich dividends, if you just stick to the plan.

Buying a franchise is very popular, but it has never appealed to me. I always felt like I was buying my own job, which I had enough of when I owned a business. The amount of investment combined with the amount of work to put forth simply does not match with my personality. Been there, done that! I would rather invest a bit less, like with the offer of the Ultimate Team, and work less hours. I would also like a much faster return on my investment.

The Ultimate team can also help you decipher the information about franchise businesses. They have a team of leaders ready to take you under their wings and teach you what they have learned about the franchise industry. To learn more about The Ultimate Team, click on the link.

Jeffrey Sloe, Internet Marketing Advisor to The Ultimate Team
440-725-3729
jeff@internetmarketingadvisors.net
http://ultimate.org