World Sales report analysis shows most of the Persons/ Buyer’s are interested to buy an American Franchise business for following reasons
The Franchiser will continuously monitoring the store sales, period counting of
inventory, notify the fluctuations on the store sales, assist to increase your store
sales, providing the training to the business owners and employees, introducing
the business sales promotions, high-end marketing doing the accounting work, monitoring
the market analysis, bring of new products and services which increase the sales
and also they focus particular area need etc. This assistance certainly helps you
to increase your time to focus on your sales and also reduces your personal management
risk. Their updated technology and methods can boost your sales and you will be
running the business successfully
One of the Keys for the Success is Marketing, Marketing nothing but Marketing. Any
products or services will know to the customers based on the advertisement. These
companies spends at least 4 to 6% of their revenue towards the marketing and that
constantly reminds the customer about the products, services and promotions which
makes they are your every day customers to the business. Successes of any business
directly relates to the marketing that cost a lots of money. As an individual it
is hard to spend that much money and it takes a longer time to get a reputation.
By buy a franchise business you chances of success will be more and more.
One of the commonest reasons to buy the business is to increase cash flow. In order
to do good sales and make money you have to add different products to satisfy the
customers needs. As an individual owner it is hard add Varity products and services,
as it cost the lot of money, labor, and supervision to make effective of the added
things. In the franchise business, the management knows what community needs and
they add those with low cost with high yield returns, and that brings more sales
and high returns to the business. This is one the commonest reasons why the buyers
want to have buy a franchise business / Branded Business than individual business
/ Unbranded business
The sale volume and cash flow of the business is mainly depends sale price of the
goods. The inventory companies will offer lesser price or discounts if you buyer
in higher volume. As an individual business owner you cannot buy much volume and
varieties of the inventory, which in turns reduces your “Buying Power”. This is
one the commonest reason why individual business store prices are higher and lesser
varieties than the franchise stores. However you have still to run your business,
you have to sell the Goods for the higher price by keeping your margin to pay off
the bills and make positive cash flow. Where as the franchise companies exercise
this opportunity and even some times they renegotiates with manufactures to lower
the price of goods as much as possible and also they will demand the credit period
as much as possible. This is one of the greatest advantages with a franchise business
compare with individual business have more margin with less price of goods.
Any business in the initial period looks attractive and profitable. But the world
is changing; technology is bringing the new products, demands, needs and requirements
in the community. It order to satisfy the customer’s needs to match the progressive
changes the business owner has to add those changes to survive in the business.
To make all these changes owners has to spend lot of money. The individual owners
cannot afford to send the required amount either they have lack of enough reserves
or to fear to vanish of the savings, leads to decrease the sales or close of the
business. Where as the franchiser have lot money and surplus reserve allows them
to make necessary changes to satisfy the customers needs to lead to longevity of
the business. This is one of the commonest reasons why the business owners want
to own franchise business than individual business.
No matter what all the business undergo changes over the period of time and needs
new technology and tools to survive the business. The franchiser constantly monitors
the need of changes, and once they identify the needs and they all add those changes
to the business model. By any reason if your sales go down, they will step in to
your business or operation and they will identify the problems and rectify them.
They all ways works as you’re you successes is their success. Their supports in
all fields are the part of the franchise agreement to keep you as a successful operator.
If you are the individual owner you do not get these kind of support and back up
and you have to resolve your problems. Hence most of the entrepreneurs want to buy
a Franchise business.
Every business owner wants to have some recognition and reputation to them and their
business as that is their social pride. Most of the individual owner business does
not get correct recognition even though they are making the money because non familiarity
of your business nature, worth and model. Surprisingly some times similar businesses
have low profile in some areas. In order to have reputations and reorganizations
in the society the entrepreneurs want to have or own franchise business as big company
feather on their hat.
World business sales reports and analysis shows that the franchise business are
more successful and profitable than the individual owner business as they are sharing
the risk among them and also working collectively gives more opportunity, expansions,
financial strength, good business model, adjusting business service and products
according to the market and customers needs etc. All of these collectively gives
the franchise business owners are more successful than the individual business owners
and that tells why the buyers want to have franchise business.
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