Christspeak, Rx

I am writing this from my personal experience with owning and operating my own successful business- a home theater/ audio-video/ burglar alarm company. That experience taught me that purchasing a franchise, (had any been available in my industry), would have saved me over $250-300,000 over the 11 years I've been in business. Amazingly, there are no experienced/successful franchises in my industry.

In small business, experience is the best teacher, but it comes with huge price- usually the most expensive tuition available. Successful franchises charge alot for their expertise as well. There is an initial franchise fee- ranging from $5000 to who knows what- plus a monthly fee, most always a percentage of monthly revenues.

Here's some of the major advantages a franchise business has over a local start-up.

• Marketing. A franchise provides your company with branding or name recognition. If the franchise is new, they include your company in national advertising and/or provide first class marketing materials to help build the brand. They know what type of advertising mediums work and provide realistic budgets and even supply uniforms, signs, facility and auto outfitting, and more.
• Accounting. From the beginning, before you even start your business a franchiser will provide not only their expenses, but a very close estimate of all your starting expenses for the first year in business. They should dictate the accounting software, procedures and provide training for all accounting related areas. They'll have a business model that accurately predicts cash flow. Purchasing and pricing issues assure you the best deals. They also help you with due dilligence- whether or not you can afford to start a business, where to locate it, how much to spend on rent, the type vehicles and equipment to purchase and so on.
• Training. This is a huge asset, because it tells you how you and your employees will deliver the product or services on a consistent basis. Believe me, proper training would still save us several thousand dollars a year.
• They provide you with a Human Resources department. All the legalities and risks related to employment are taken off your shoulders.
• Accountibility. This comes in varying forms, but your success is measured against other franchisees. Your sales may be great, but your expenses may be too high. A good franchiser is more than just a partner, they are a wise and experienced mentor.