Small Business Management

1 . The Benefits and Drawbacks of Buying a Franchise

Franchising leads to the coming together of the owners of well known brands and products with other businesses . With most business start-ups running a very high risk of failure , buying of franchises offers a way for small businesses to enter into a proven and tested business area and significantly reduce the chances of early business failure by obtaining authentication , reliability , and business support through their association with franchise holders . However , with all businesses primarily being uncertain activities driven by a range of variables

br franchising too has its share of pluses and minuses

Buying franchises enable small businesses to run their firms with the name recognition of their franchise owners and obtain their backup support and expertise in the running of their operations . Franchise owners also help their franchisees with advertising and marketing support , factors that are critical for business success but are outside the financial resources of many small businesses

Franchise buyers are also the indirect beneficiaries of the significantly stronger buying powers of their franchisors . Most small businesses operate in a difficult terrain that exists between rocks and hard places being routinely squeezed by clients and vendors Franchisors , by providing their franchisees with the benefits of their size and skills in two critical areas , supplies and markets , add significantly to the operational flexibility , strength , and skills of small firms

Apart from help with marketing and supplies , franchisors are strong sources of knowledge , training , and skills , which are gradually passed on...