Small Business Idea

Posts Tagged ‘Association Franchise’

Food & beverage business it seems there is never quiet. You were so interested in starting their own business in this field, but perhaps you are still confused between his own pioneering efforts, or buying a franchise from an existing business and well known (such as cassava cheese, donuts potatoes, sweet corn and others).

Which actually is more profitable and safer for beginners in the field of entrepreneurship, starting their own business or buying a franchise? If you buy a franchise can be said safely, what should be studied, prepared and conducted? Conversely, if the more secure starting their owned business, what should we prepare and do first? What is the capital required to open a small food business? From the amount of initial capital, how about the money that we should play, and how much money should be kept as a reserve capital?

Starting a business always felt hard for everyone, especially for those who have never done before or doing business. That is why many people who then took a shortcut by buying a franchise, the hope is not too heavy and daunting than starting my own business. Actually, there are advantages and disadvantages of each of these efforts.

One of the first things that is often overlooked by many novice businessmen are “buying a franchise” remains the same as when we started my own business. Many people think, buying a franchise is the assurance that their money is safe and will keep running the business. It was not, a lot is happening, in times of euphoria franchise around 3-4 years ago, where the business was his first franchise was now no longer his business or if there was only 1 or 2 stores only. Worse, there are some businesses that are precisely the franchise headquarters Franchisor alias instead of his aliases was closed out of business. Therefore, be careful. That’s why the Association of Franchise apply strict rules for its members.

Which must always be remembered and cared for all, the stigma of buying a franchise is more secure than starting my own business and brand by itself, is not entirely true, as already stated above, the franchise remains business or a business that also has risks and should be seriously and correct.

When we refer to the standardization process of overseas franchise, a franchisee (franchisee) must come through the process of waiting or waiting lists, doing interviews (interview) several times, until his Franchisor sure, the person is eligible to obtain the desired franchise, Not to mention taking into account the location for the business, which became one of the most important measure of the success of franchise.

The whole process is done by a company that was a real franchise must be performed by some business which includes product marketing, product benefits, sales locations and others. It’s just that, a lot of beginner businessmen who do not want or do not understand the initial preparation of a business before starting his efforts.

However, although this process has been started, the process of running a business remains to be done and watched closely, as the work done without a franchise. The things that are preserved are obliged among other things: the quality of merchandise, service standards, standards of hygiene (for the restaurant business or other businesses that require a high level of cleanliness), and so forth.

So, what advantages and disadvantages of choosing a franchise than starting a business with their own brand?
a. First, who can be expected from a franchise is “branding” aka big names that have been carried by the Franchisor. With big names that have been carried by the Franchisor, expected level of public trust in the products or services provided are very high. Thus, it can be said that opening an existing store buyers who queued to go and buy your merchandise. Therefore, avoid companies that are the franchise that has not got a name, be it a business name or business, or the owner’s name already known to the public.

b. Second, for the food business, make sure recipe or taste already favored by people (general public) and tested. Expected when the shop opened, people are familiar with the name and taste of food you offer, so they are not afraid to try. The number of people who came into the store will increase sales, which will ultimately increase revenue and profits. Therefore, look for a franchise where the taste of food offered in accordance with the tongue most people.

Benefits can last get of a franchise is already working system, or similar standards from one store to another. The system is already working this standard will allow your employees to do the job and allows you as a business owner to control the employee’s work, because obviously rejected the measure, which must be prepared before the start of business:

1. Make sure you have a family emergency fund depending on the number of family dependents. Ensure that all investment funds for this effort will not interfere with your family finances (investment money is considered lost).

2. Magnitude of investment funds (in nominal terms) will depend on the type and scale of business that wants to do. Instead, start with a little girl, after a successful business can be brought up again then.

3. In addition to investment funds for rent, equipment, and supplies, which also is a fund should be prepared for circulation. Ideally, the food business is required to fund approximately three months to spare played or known as working capital. However, to make it more secure, you can prepare up to 6 months of working capital. Which must be kept in mind is that if you have the budget outside of business investment for working capital, do not use all capital for investment, but used part of it, so there are excess reserve funds if it need.