The Best Franchise Opportunities

More and more people have seen their jobs cut as a result of the recession. Being made redundant may however be the opportunity of your lifetime, to take everything on your own and to start a profitable business. Many people are just afraid to take on a home based opportunity, while others prefer to buy a business using the redundancy money they get when they lose their jobs.

Investing redundancy money in a business

Going into business on your own is a tough decision and implies many risks. However franchising is a safer route in starting your own business. When you buy an ethical franchise you adopt a successful business formula and you will not be alone when going through this. As a franchisee you have access to advice, direction and help from people running the same business as you are. As a consequence franchising is a successful method for you to start your own business and this is why even during these hard economic times, franchisees are still making profit. All you have to do when considering franchise opportunities is to make sure it is an ethical franchise and that it has the accreditation of the British Franchise Association (BFA).

Are franchises safer than big businesses?

Although these are difficult years for the economy, there are some very successful franchises. Franchises statistically look better, because of they have an established brand name, a tried and tested formula, as well as back up and support from the franchisor, and therefore they have higher success rates. It is necessary that you make a thorough research of the franchise you're looking for, and pay attention to what is their position in the current markets.

To find the best franchise for you, you have to analyze your own skills and experiences. It is imperative that your skills and experience fit the skills and type of experience necessary to run the franchise you are choosing. Franchising can allow you to work in a place where you have no previous experience.

Buying a franchise is a significantly easier way to start your own business, than starting from scratch. You also have the advantage that you can see your potential business functioning even before you invest a penny.

You also start your business using know-how and expertise accumulated over years of running a similar business. You even don't have to worry about developing the system or coming up with the original business concept.

Do banks support franchising?

Banks seem to really like franchising and estimate that it can be safer to lend to franchisees of ethical franchise systems. However, the track record of the franchisor is of maximum importance. When it comes to an established franchise, major banks will lend up to 70% of the start up costs. The franchisee is expected to contribute at least 30% of the cost of the franchise. So, you can borrow up to 70% when using a good ethical franchise system, while the same banks lend only 50% on a new stand alone business.