Franchise Prospector » Military Veterans
Evaluating the Advantages and Disadvantages of Franchising for Veterans
Is franchising for you? Take a close look at the advantages and disadvantages to see if franchising fits your personality.
Many veterans who are interested in starting their own businesses are turning to franchises. Franchises provide them with established brand names that are sought out by consumers. The best franchises also offer extensive business counseling and support for new franchisees. In exchange for these services franchisees pay a fee to start their relationship with the franchisor as well as a percentage of their total sales each year.
Advantages: a Familiar, Friendly Format
Franchises are appealing to veterans because they closely mimic the military chain of command. As a franchisee, you are responsible for your team of employees, but one of your biggest jobs is executing orders that come from your franchisor. You may have some latitude in how you meet the directives of your franchisor, but you must follow them.
Lots of Assistance
Starting a business requires a big investment, so ensure that your investment will pay good dividends. One way to maximize your success is to find a franchise that offers good support and training programs for its franchisees. As a military veteran, you might find that you have the work ethic and raw talent to make your business a success, but your knowledge of certain business areas might be lacking. Your franchisor can help you to learn the basics.
A Greater Chance of Success
In general, franchises have a better chance of thriving than other small businesses because their formulas have been used to run other branches successfully. If you do not mind meeting the requirements of the franchisors, buying a franchise might give you greater peace of mind than starting your own business from scratch.
Disadvantages: Lack of Control over Your Business
The advantages of starting a franchise business as a veteran might seem overwhelming, but you must keep in mind that there are some potential downsides as well. As a franchisee, you do not have total control over how your business is run. Ultimately, decisions about your franchise are made by the franchisor. At first, this help will probably be welcome. Starting a business can be overwhelming, so it feels good to have access to an expert to guide you through the process. If you are someone who enjoys making decisions on your own, you might begin to get frustrated with the franchising structure as you learn more about how your business works. You may have good ideas for improving your profits but be unable to act on them because they do not match the franchisor's policies.
Franchising Fees
Consider that franchisees must pay their franchisors a fee to get started, and then share a portion of the profits on every sale with them. Evaluate your potential franchises carefully and make sure that you are comfortable with the level of service and expertise you will get for your fees; otherwise you could end up resenting every check you write to your franchisor.
Franchises are a great option for veterans who feel unsure about their business skills. If you would like some outside help in getting your business started and growing, a franchise might be the answer. If you have a lot of experience in business already, though, you might find the structure of a franchise too limiting.
For More Information
|
