Cash Flow Potentials

According to statistics compiled by the SBA (Small Business Administration), somewhere around 33 percent of new ventures fail within their first two years. For some individuals they find this makes starting a business risky. When deciding whether or not to start a business, an entrepreneur must first think about a variety of factors. These may include:

• Self Assessment - What sort of knowledge is necessary to run a particular business; how does it fit with my skill levels or those I will select to look after day-to-day operations
• Market - What sort of need exists for this particular product or service, and what kind of competition is there?
• Financial - How much does it cost to open and run this business; how likely is it to attract investors or some other form of third-party financing
• Branding- Is there any existing value to the company name or product?
• Sales - What will drive sales? Each of the above contains a certain element of risk.

A new entrepreneur will do his or her best to mitigate these risks, and one of the ways to do this is to consider starting with a personal franchise rather then start something from scratch or opening a traditional franchise.

What are some of the benefits?

• Low Cost of Entry – Most you can start for less than $500.00
• Ready-made business and marketing plans – they are just enough to get you started so you learn the process of how to do them. They usually are very simple.
• Extensive training – The company will only survive if they can help you enter the market, work with customers and makes sales.
• Products or services are already established its value in the marketplace – You need to understand the product or service and why you believe in it. You must have a passion for the product or service.
• Branding – They have done all the work for you. Spend some time validating it is a good brand in the marketplace.

Yes, for many it is a much safer path then starting a new business from scratch from an idea or starting a traditional franchise. It allows the new entrepreneur to get a lot of experience in starting a business with very little money! It is a great incubator to learn:

• How to create partnerships – Never do a business by yourself. Understand you skills and find other you trust that have the others skills needed to run the business.
• Financing – Funding a Personal Franchise is the same as funding a big business or a small startup. The funds have to come from somewhere – self funded, small business loan, a micro loan or another loan of some sort.
• Accounting – This is the language of business! Every business owner must learn it but most first time entrepreneurs are deathly afraid of the thought of trying to understand it. Yet it is really simple to learn in a small operation.
• Operations – Most of the operations of inventory, shipping and the handling of transactions are all managed by the main company.
• Sales & Marketing – Without this, there is NO business. Many entrepreneurs learn the most in this area. The benefit again comes from the low cost of entry – it is easier to learn this with a few thousand dollars then mortgaging your house and having $250,000 you need to learn with.

Many find starting a low cost of entry Personal Franchsie to be one of the best learning experinces for business. When they are done with their education, they either continue to enjoy their business or find out how easy it was and start something even larger!


Looking to start a Personal Franchise? We have researched many of them and help you find the right one for you!