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The business cycle for a startup will typically first lose money during its gestation period, then break even and eventually become profitable. For an average business, this process takes about two to three years.
you need to put strong agreements in place. You would be having a tri- party arrangement therefore Your agreement with franchisor needs as serious a review .See how long is the franchise agreement for, when it needs to be renewed, terms of renewal, you would also need training to run the business etc.
We toy with various ideas about setting up shop to open a new business in the local community. The predicament however is the fear of failure or losing a lot of money, which often holds us from giving wings to our business dream. Creating businesses does not have to be an expensive process, not always. Today there countless Low investment business ideas which help you do businesses with outside the box concepts and low starting cost. These concepts are usually address a real, continuing market need or opportunity in a better manner.
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At the sellers end we need to be sure to know the reasons why they are selling and be careful to start a dialogue with franchisor at the same time because usually he may have the first right for refusal in such cases.
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As far as ROI is concerned, it should certainly be more than what bank interest or stock returns can offer you, so without being over optimistic, a fair number would be say anything above 12-13%.It will also depend on the type of Business you are investing in.
Firstly, an arrangement like this comes with some obvious advantages. The business is already up and running. You don't have to go through the hassle of doing the groundwork & build it up. The staff is already in place and trained, and the business has an existing customer base and hopefully a great reputation in the community.
You will get hundreds of Ideas for good businesses with little capital investment. Whether youre looking for home business ideas, service business ideas, online business ideas or want a part-time business, Brainstorm with the small business ideas, find a concept and think about ways that you can fine-tune the business to exactly meet the needs of your local market. You could get the right brand matching your capital Investment needs across all sectors of Business.
After six years in business, you are certainly ready to consider franchising as an option. The advantage of franchising is that franchisees invest their own money into the expansion of your brand and are therefore highly motivated to ensure the success of their businesses.