Be the Boss

BE THE BOSS

With more and more companies moving out of the United States, people are looking for new ways to earn income. There are two major ways to do this: finding another job working for someone else or starting your own business. Many people dream of owning their own business and have done so by either starting a business from scratch or franchising. Many of these people are managers who’ve retired early or are executives who were victims of downsizing but have saved money.

Starting a business gives you the freedom to make your own rules. You control the future of the company; you can decide whether you want two employees 2000 employees. In an independent business, every decision you make can help or hinder growth. Being an independent business owner allows the owner to use creativity and innovation to strengthen the company. Franchising is dictated by the franchisor. The franchisor has its reputation on the line and hence wants to protect it. The franchisor puts in place a proven set of rules to follow. They also furnish training, management support and a proven product. There are three major factors that a person needs to evaluate when deciding what kind of business they want to pursue: The cost, what kind of management is available, and the risk involved.

The cost of starting your own business varies greatly. You must consider where you are going to locate your business. If this is a business that needs to be seen then you will have to consider this in the cost of start up. It will cost more for a good location but often it will pay off in future sales. Advertisements need to be considered in your start up price. You also must figure in furniture, fixtures, supplies, equipment and the cost of utilities. It is wise to have three times the amount of monthly expenditures saved before opening a business. Most start up businesses do not realize a profit in its first ninety days, so therefore it is important to have a budget and capital to survive the initial struggle.

The cost of buying a franchise can also vary. Franchises can range from just a few thousand dollars to millions of dollars. Ideally, a larger investment will result in larger returns. One thing that has to be addressed when looking to buy a franchise is the fees charged by the franchisor. All franchisors charge a franchise fee which varies from franchise to franchise. They also receive a royalty fee of four percent from your sales. One benefit of franchising is that the franchisor helps to do research on markets and business location. Another benefit to franchising is group buying power and national advertising.

When starting up a business you have to consider what kind of management skills you possess. If you don’t have the management skills needed to run your company efficiently you will have to hire a manager that is competent. It is very important to have the right management to progress your company. Many start up businesses fail due to poor management. You must hire a human resource specialist that can keep the books in order and relay any messages from customers that could be of importance.

When franchising, you receive management training and a complete human resources team that is developed through the franchisors use of money received from royalties. This really reduces the cost of hiring employees and gives you a much more competent human resources team. You must hire a manager but the training is provided by the franchisor. Training is focused on the main concepts of management for the franchises services or products and there is always ongoing management support to educate your managers.

The biggest factor of owning any business is the financial risk involved. When starting your own business, you must analyze