The decision to open a business requires a leap of faith even for a well-prepared entrepreneur. This is true when the economy is booming and even more so during a recession. However, you can reduce the risk in opening a business by choosing to become a franchise owner. This gives you the support of an established company, and the benefit of their brand.
Selecting a franchise that best fits your personal and economic circumstances is the next step to being a successful business owner.
An Established Company with Low Start-up Costs
The 7-Eleven Company is a well-established brand that offers relatively low start-up costs for a franchise. The company has a track record of success and is flexible in their terms of ownership.
- There is a low initial investment ranging between $10,000 and $1,000,000 depending on the gross profits of the store opened. There is a down payment necessary on store supplies, inventory, and business licenses.
- 7-Eleven provides a turnkey operation. The new owner receives a fully stocked store, and they can begin operation without searching for initial products.
- The 7-Eleven company provides payroll and bookkeeping services for store operations. They also provide many other necessary functions of a business to simplify things for the owner.
- The initial costs of the land and building are borne by the 7-Eleven company, and they offer financing for store operating costs.
- The net worth requirement is only $127,000, and a franchise owner can get started in business in the short time of only two months in some cases.
These are only a few points demonstrating why a 7-Eleven franchise is a good opportunity for those looking for a retail franchise. The level of support would seem to lower the risk of failure in this type of operation.
A Cool New Franchise Opportunity
Ice House America is a new company with an interesting franchise opportunity for those living in warm weather locations. They offer an automated ice and water vending business. There are a number of advantages in this particular business.
- There are loans available for this franchise through several entities including the Small Business Administration. The company offers special discount terms for veterans, and they are part of the International Franchise Association.
- There is no need for employees since it is a 24 hour automated service. The company offers a remote managing system that lets the owner track sales and troubleshoot problems using a laptop or smart phone.
- There are three different sizes available for the automated vending system ranging from a Mini XL, which is basically a kiosk, to Ice Hut and Ice House. The owner can choose based upon space limitations or predicted production needs.
- These range in price from $35,000 to $150,000 with some variance in equipment options and installation costs.
A Franchise Opportunity for Tough Economic Times
Aaron’s offers rent to own or leasing opportunities for electronics, appliances, and furniture. This franchise has been climbing up the rankings for successful franchises over the last four years, and it would seem to have great potential in the current economic climate.
- The company will finance up to $450,000 for obtaining inventory. It is possible for some franchise owners to obtain more financing depending on their particular economic situation.
- Rent to lease or own businesses traditionally do well during economic slowdowns. Aaron’s stock has consistently outperformed other companies in the same line of business.
- The franchise does not insist on owner-operator arrangements. This allows the owner to delegate day to day responsibility to a general manager and focus on other opportunities.
Opening a franchise is not for everybody, but the opportunities combined with the lower risks make it an attractive proposition for many. Franchise ownership generally offers a quicker return on investment than other businesses and most do not require special skills or knowledge to operate. The training necessary to run one is provided by the parent company as part of your investment.
- License: Creative Commons image source
Nora Phillips is a writer at Masters in Accounting Degrees, a resource for others interested in furthering their education in the field of accounting.
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Mark Montoya has been working in personal branding for more than a decade for hundreds of online and offline companies, small businesses and individual service professionals. His focus has been toward improving the way jobseekers find employment on the Internet. He has synthesized his expertise by helping job seekers obtain their ideal choice of employment over the Internet on his sites MyOnlineCareerSpace.com and MyOnlineCareerCoach.com, and through his books 101 Tips Every Job Seeker Should Know and The Ultimate Online Job Search eBook.
“It is the responsibility of the individual to reject the prospect of mediocrity and to strive for the betterment of society as a whole” ~ Mark Montoya