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Noticias de Franquicias


Diciembre 15, 2011

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The difference between buying a franchise from scratch and buying one in operation

Once you are convinced that the best investment is buying a franchise, as it has a proven "know how" as well as marketing support, logistics and administrative and control processes tailored designed for the specific business, the next step might be to decide to open your own business "from scratch", or acquire a business in full operation.

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Like all options, in general, they have their pros and cons.

Starting from scratch

Advantages:

 In general, it provides a more personalized "attention" from the franchisor, because as a new prospect he/she needs a comprehensive training, while when taking over a going business, many aspects are taken into practice, which at first appears as an advantage, and it is, but secondary aspects can be distorted to some extent due to time limitations and those who are carrying them out.

 It also makes it possible for you to choose employees freely, with no commitment to the ongoing business, which already has a staff you are not aware if they are well trained and experienced, and whom you don’t personally know and trust, as would be the staff you personally choose without any constraints.

 We may also mention the fact that you can install your own business in a specific area of your taste or convenience. While it may not be exactly where you prefer, because the area may be covered by another franchisor, you have a greater geographical flexibility than focusing on a particular location without options.

 There may be other secondary aspects but we won’t discuss them in this brief article.

Disadvantages:

 If you start with an ongoing business, you'll be able to see the movement of the "real" business, being able to visit at different times and days, and even seek the advice from people you trust, to get an opinion on the specific peculiarities of the business and its potential. This obviously does not happen when you do not have a prior specific reference about the market, customs, competitors, etc., when get started from scratch. Many times the routine of the staff often causes dilution over time of secondary concepts that make the essence of the business and its success. That would depend on the follow-up franchisors make depending on the specific organization of the company.

  If you have the determination and enough funds, but you don’t know the right people to join you in your project, you will have more options if you deal with the staff already in place and the ones you can hire, after selection.

 Starting from scratch will make the installation times much longer since, in the case of establishment of shops, it is not a simple process because after the area is selected, you will have the real state arrangement process and the preparation of the location.

As mentioned above, each case is unique, so this is a brief overview to consider some of the factors, because in essence, certain aspects can be an advantage or a disadvantage.

Find the best business opportunities and franchises for Hispanics in the United States

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