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| "I'm All Eyes" for Home Business Secrets Blog: Should You Own Or Franchise? |
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Thursday, February 28, 2008
Copyright © Karen Morel http://www.ExploringMarketingSuccess.comThe decision to open your own business or open a franchise for a large chain business will need some careful thought before you invest any cash. There are advantages and disadvantages to both, and you can start with a simple pro and con list to determine which business model will work the best for you. When you own your own business you will have to develop all systems to meet your individual requirements. Payroll, supply ordering, invoicing, data collection as well as all personnel policies and procedures. With a franchise, all of these systems are usually included in the price of the franchise fee. A complete training program is usually provided to teach the owner and other principals how the systems work, enabling you to start off on the right foot. With a franchise, while you own the business, it is going to be run according to established company guidelines. While there may be some room for deviation, many franchises require the owner to use only their approved products. Established business practices and products to be sold are mandated to protect the integrity of the brand. Deviation from the menu or product selection is often grounds for hefty fines or cancellation of the franchise agreement. When you own your own business, all the decisions you make are your own. If you decide a particular item in the product mix is not working for your specific location you have the individual autonomy to make a change. With a franchise it may take an act of Congress to get a change put through. There have been many stories about a franchise owner introducing a new menu item that the customers wanted and are thrilled to have on the menu. The parent company, however was not pleased and ended the franchise, leaving the owner out in the cold for failing to follow policy. With a franchise, part of the monthly fee goes towards national advertising. In most cases the individual franchise owner has the right to refuse to participate in a particular campaign, but with the advertisements running nationally, if your outlet is not offering the special deal you might antagonize some customers, resulting in a loss of business. Additionally, there may be some company policies that you do not agree with that you will need to follow to remain in the franchise Owning you own business will require you to pay attention to trends as well as what your competition is doing to keep your business in front and to increase market share. Before investing in a franchise, you will need to fully understand your obligations to the company as well as what the expectations are. If you cannot agree with everything required to operate the franchise, it might be better to open your own business. About the Author:----------------------------------------------------------------- To find the best home based business ideas and opportunities so you can work at home visit: http://www.ExploringMarketingSuccess.com
 
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