FRANCHISE OR BUSINESS OPPORTUNITY?.
March 08, 2008
Before setting up a business, it is necessary that we know what business fits and is manageable by us. A wrong or careless decision in choosing it may result in a big loss. Today, it is not that difficult to learn about it. Abundance of information is easily accessible online and off-line.
To entrepreneurs, something to know before deciding what business to choose are aspects of capital, will, time availability, vision and mission.
Capital plays an important role in business. Having enough capital makes people free to run any business. But capital is not the only thing we need. There is a situation, for us whose profession is an employee, that we have capital and strong will but we do not have sufficient know-how about it. Should we quit our job and start a business, buy a franchise or a business opportunity?.
To cope with the problem, here we have the information.If we decide to take the first option, then we have to lose our job and take action by ourselves or by hiring people. If we do it by ourselves, we have to be on site all the time. Otherwise, our business will result in bad performance and bankruptcy.
Hiring people to run our business is a good alternative. But before deciding to hire them, first and most important of all, we must prepare a reliable system for the business. We can formulate the system by ourselves or buy it from a business consultant. Through the system, we can control how our business runs without our presence.
Another alternative we can put in our list is buying franchise or business opportunity. If we decide to buy them, we need to know what actually the differences between them.
However we need learn about what they are all about. A business can be classified as a franchise if it has been proven in the market. And then, it provides uniformity and business duplicate for all the franchisees. All policies taken for the business are based on written rules. In other words, a business is reliable to be franchised if it has sufficient length of operation, expertise in its business, and has a good and accountable business system.
On the other hand, a business opportunity is a business that offers an opportunity for others to open a business. It is usually created by a businessman to merely accelerate the business expansion. He does not really care of whether or not it has reliable and accountable system. The objective is just "again" to expand his business easily with a minimum capital. The management assistance is usually ignored. But, as a matter of fact, we frequently find such a kind of practice is dubbed as a franchise business although it is theoretically unreliable to be franchised.
After all, being careful in setting up a business is very important. We have to painstakingly consider what business we want to run, how much capital it needs, and how to run it well. If we decide to buy a franchise because we want it to produce profit in a short time, we have to see whether it is a real franchise or just business opportunity. Never ever be cheated!
posted by mcDamas @ 9:04 AM,
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