Buying a Franchise

Written by John Mussi


Buying a franchise is not for everyone. This guide will help you evaluate whether buying a franchise is right for you. It will help you understand your obligations as a franchise owner. Many people dream of owning and running their own business but are often let down byrepparttar reality of doing so.

By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But be cautious. Like any investment, purchasing a franchise is not a guarantee of success.

A franchise typically enables you,repparttar 136459 investor or "franchisee," to operate a business. By paying a franchise fee, which may cost several thousand pounds, you are given a format or system developed byrepparttar 136460 company ("franchisor"),repparttar 136461 right to userepparttar 136462 franchisor's name for a limited time, and assistance.

While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. You also may be required to relinquish significant control over your business, while taking on contractual obligations withrepparttar 136463 franchisor.

Outlined below are some ofrepparttar 136464 main points you need to consider before buying a franchise:

Franchise fee: Your initial franchise fee, which may be non-refundable, may cost several thousand to several hundred thousand pounds.

Royalty payments: You may have to payrepparttar 136465 franchisor royalties based on a percentage of your weekly or monthly gross income. You often must pay royalties even if your outlet has not earned significant income during that time. In addition, royalties usually are paid forrepparttar 136466 right to userepparttar 136467 franchisor's name.

How To Start a Small Business

Written by John Mussi


Not sure how to start a small business? This guide will offer you some useful tips onrepparttar basic requirements of starting a small business.

Initially, there are two types of businesses available to you, Sole Trader or Partnership. Both are explained below:

Sole Trader:

This isrepparttar 136458 easiest and least costly way of starting a business. A sole trader can be formed by finding a location and openingrepparttar 136459 door for business. There are likely to be small fees to obtain business name registration. Lawyer's and accountant fees for startingrepparttar 136460 business will be less thanrepparttar 136461 other business forms because less preparation of documents is required andrepparttar 136462 owner has absolute authority over all business decisions.

Partnership:

There are several types of partnerships. The two most common types are general and limited partnerships. A general partnership can be formed simply by an oral agreement between two or more persons, but a legal partnership agreement drawn up by a lawyer is highly recommended. Legal fees for drawing up a partnership agreement are higher than those for a sole trader. A partnership agreement could be helpful in solving any disputes. However, partners are responsible for each other's business actions, as well as their own.

Useful Information:

Starting and managing a business takes motivation, desire and talent. It also takes research and planning. To increase your chance for success, takerepparttar 136463 time up front to explore and evaluate your business and personal goals. Then use this information to build a comprehensive and well­ thought­ out business plan that will help you reach these goals.

The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success.

Before starting out, list your reasons for wanting to go into business. Some ofrepparttar 136464 most common reasons for starting a business are:

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