What kind of business to do, or a few words about the autonomous business and the franchise

Willingness to do business implies the desire to drastically change its earnings system and the availability of some amount of free funds.

What kind of business to do is a question, the answer to which everyone must look for himself. But there are several points that can be taken into account.

What should be considered when deciding the question "what business can I open?"

1. Deciding which business to do, you need to determine exactly what amount of free money you have, that is, what funds can be used to start a business without causing serious damage to yourself and the family budget. The calculation takes time, during which the business will not generate revenue.
2. You should also determine how much borrowed funds can be quickly attracted if necessary and how much it will cost. It is recommended to determine in advance the sources of borrowing and lending, as well as to provide for the possibility of paying off the borrowed amounts and interest.
3. It is necessary to calculate the cost of the "entrance ticket" in the business and compare it with the amount of available free money.
4. It is necessary to provide for the availability of free reserve funds, which may be needed to solve unforeseen issues.
5. It is necessary to determine the loss of how much money you can afford.
6. It is necessary to assess the demand for the goods (or services) planned for production (or provision), to determine its liquidity and competitiveness.
7. Choosing which business to do, give preference to the case, in which you are well versed, and from whom you enjoy.

The main difficulty in starting a business is the lack of experience leading to costly mistakes. The way to insure is the purchase of a franchise.

Advantages of franchising in terms of opening a business.

Franchising, according to modern statistics, is considered the most crisis-resistant type of business. Princeton Institute, relying on its research, states that in the field of autonomous private entrepreneurship, only 15% of those "set sail" correspond to the criteria for successful business, while 92% of the newcomers are recognized as successful on the franchising market.

Let's consider, what advantages the franchisee (the firm who has bought the franchise and starting business) receives.

1. By investing a minimum capital, the new firm gets at its disposal a well-developed business model that insures it from making mistakes.
2. Franchisee receives comprehensive support from a more experienced and, as a rule, financially stronger business, interested in his (franchise) successful development.
3. The new enterprise from the first day of its existence works with the goods (or services) with a well-known and competitive name, which allows to significantly reduce the costs of "unwinding".
4. Newly-minted business gets access to cheaper borrowed funds provided by a franchisor or under the name of a franchisor. Banks are more willing to lend representatives of known network systems.
5. Franchisee gets the opportunity to use the results of large-scale advertising campaigns, paying only a small part of them as a member of the network.
6. The new business is relieved of the need to independently create a network of suppliers and to worry about the constant maintenance of the level of supply.
7. Franchisee gets access to training from the franchisor. As a rule, it meets high standards and meets the professional needs of young business.

It is important that the interests of the franchisor and the franchisee coincide "globally", because both are interested in the rapid and qualitative growth of the common cause. It is this coincidence, coupled with a competently constructed system of relations, that make franchising the fastest growing way of doing business.

Choosing which business to do, study the available franchise offers. Compare them with your desires and financial possibilities. Perhaps this is the path that will lead you to success, and one day your business will be told: "what a profitable business!"