3 Reasons Why You Should Not Franchise Your Business

Many small business owners have strong grounds to consider franchising as an option to grow their businesses; yet there are also many reasons why some entrepreneurs should stop before they make the same choice. Following are three main reasons why you should NOT consider franchising your business.

  • Underfunding

Franchising is expensive to launch. There are legal, operational, and training documents to prepare and management strategies to develop and implement. In addition, once you are ready to offer the franchise you must have funds available to market the opportunity and to support franchisees.

Many small companies have the finances to get the first step done but fall short when it comes to marketing their opportunity or supporting their franchisees. The resulting slow growth caused by not investing sufficient funds in marketing the franchise can be deadly for many entrepreneurs who aspired to recover their initial investment quickly. Their motivation fades away and many stop their efforts to grow their franchise networks.

Other underfunded franchisors may be able to sell franchises but lack the funds to hire the management and staff to train and support franchisees. The result is not only under-performing franchisees but also unhappy ones both of whom affect your ability to sell more franchises.

  • Non Sustainable Product or Service

If your product or service is a fad or has the chance of its demand decreasing drastically, franchising your business is most likely not the right move. You may be able to sell franchises, but if there is not a strong probability that your franchisees will be able to make income commensurable with the required investment over the life of the franchise agreement, you should not consider franchising the business.

Another facet of sustainability is your ability to provide value to franchisees in an ongoing basis. In other words, do you have a business model that ties the franchisee to you, that makes it valuable to them to be associated with you? Are you able to offer ongoing value for the royalties they have to pay? Or, is the only thing you have to offer your knowledge of how to start and operate the business? If the latter applies, you should probably not consider franchising.

  • Inability to Let Go

If you love what you do and can’t see yourself doing anything else, you may not a good candidate to franchise your business. Granted, it is important to be passionate about your product and your services, however you must be able to let go of your current duties, as the job of a franchisor is different than that of the operator of the business.

If you can’t let go of your current duties, are you willing and able to bring someone else to lead the franchising efforts? If not, you will most likely not be able to grow your franchise and your investment getting it set up will be in vain.

Franchising is a wonderful way to grow a business and it makes sense for many business owners. However, franchising is not for everyone.

A Few Tips For Starting A Home Business

Starting a home business can be a very exciting adventure. However, it is important to follow a few easy tips to make your business both fun and profitable. Whether you are thinking of starting a land-based business or an internet business, it will be important to have a solid foundation for growth in place that will provide you with the return on your investment that you want.


Thinking about the type of business you want to start is important. Many people do not realize that a home business requires a tremendous amount of effort and persistence. It will be necessary for you to carefully consider the amount of time you want to invest in your business and be aware that during the start-up phase of your business, you will be working many hours.

Once you have decided how much time you are willing to invest in your business you will want to decide what type of product or service you will focus on. When deciding on a product or service, it will be important to think about what you are passionate about and can lose track of time when you are doing it. When a person develops a product or service that they thoroughly enjoy, it is very easy to invest the amount of time needed to build a business.


If you are starting a home business and will be producing a product in your home, it will be important to check the regulations in your area regarding home businesses. Most areas have strict regulations about the types of products that a person can make and sell from their home. In addition, some regions have regulations about service-related businesses in homes. Knowing what the regulations are, getting the proper licenses and creating a distinct and separate work space in your home will help you to avoid co-mingling your home activities with your work activities.


When you have an idea of the service or product that you want to sell, doing research on your potential market will be very beneficial. By looking closely at your potential competition and the products and services they provide and their prices, you can get a good idea of what you will need to create to lead that industry.

Most people creating a product do not consider all of the costs involved. Calculating the cost of producing, marketing and sending an item will give you a great idea of the prices that you must charge to break even. A mistake that most people make is to research their competition and try to sell the product for less without considering the costs involved. Setting realistic prices based on the total cost of items will be important to your success as an entrepreneur.


By taking the time to prepare properly, you can more easily create a business that will be profitable. When you are considering what you want to sell, you will be more successful in creating your marketing and advertising strategies if you have a clear understanding of the actual costs for producing the items and building your presence in the industry.

Tips For Choosing An Internet Business

Many people are finding that the internet offers a tremendous number of business opportunities to the entrepreneur. However, knowing what to look for when comparing opportunities will help you to make the wisest investment when you are starting a business. There are a few tips for choosing an internet business that will help you to identify the legitimate opportunities from the scams.


Just like a land-based business, there is no “get rich quick” scheme on the internet that is going to work. When you are looking at opportunities that begin with making promises about little or not work and lots of money fast, be wary. There are many scams on the internet, put there by people who are preying on people that need to make money.

There are individuals who have several different sites on the internet offering different business opportunities. These people use different names for each website so you don’t know that the same guy is selling the dream under a different domain. This type of person is getting rich by ripping people off, not by selling a legitimate business opportunity.

A legitimate business opportunity will have a history and a paper trail. Do not take the testimonials on the website at face value, remember that those cool records of earnings are very easy to recreate and make up using Photoshop, be aware that if the seller had made a gazillion dollars using the secret formula they are selling, they would not need or want to sell the secret formula to strangers. The secret formula for them is to make money off of people looking for a fast buck.


Before you enter a business opportunity be sure that you research the products that you are going to sell. While most people do not think of affiliate marketing as “selling”, it is exactly that. In order to build a successful business, you must have a passion for the products you sell and they must be reliable and dependable.

Think about the investment of time and money that will be involved in selling the product and becoming the leader in the industry. It is much easier for a person to market a product or service that they are passionate about. If you are going to sell another person’s product on your website, make sure that you test it, try it, and feel comfortable that it will do what you are promising people it will do.

The internet community is global, but very small. An individual who gets a bad name on the internet for their business practices is soon found out. These individual may be able to scam a few individuals, but anyone researching the individual can easily find their history of complaints and unscrupulous actions. Therefore, it is important that you maintain a reputation for reliability, dependability, and have a product or service that you can over-deliver on easily.


Doing the proper research and getting a clear idea of the time and money you will need to invest to give your business the foundation it needs to grow will help you to knowledgeably select a business and product that will allow you to enjoy a continuous, long-term residual income. Once you have established the foundation you need to have a successful business, you will be able to enjoy greater returns on your investment.