Franchising: The Perfect Recipe for Small Business Success?

By: Jessica Miller - Staff Writer for RedHotFranchises.com

 

dicated News) Starting a business always involves risk, but few entrepreneurs know just how much can be at stake when starting a new business.

According to the Small Business Administration (SBA), more than 50 percent of all small businesses end in failure during their first year with 95 percent failing within their first five years. With the risk of failure so high, many aspiring entrepreneurs simply aren't willing to take the gamble of starting their own businesses from scratch, instead opting to become franchisees.

Franchising offers numerous benefits: It allows entrepreneurs to learn the specifics of starting a business while also giving them the ability to glean advice and support from the franchisor. In addition to relatively low startup costs and low risk, entrepreneurs can also gain valuable business experience while they promote a product or service that is already proven in the marketplace.

After running his own businesses for years, Artur Mkrtchyan became a franchisee because of the advantages it afforded him. As a franchisee of Monthly Coupons, his business is thriving.

"We have a higher profit margin than any of our previous businesses. Choosing to become a franchisee with Monthly Coupons, who provides continuous support, was a smart business decision."

The keys to finding the right franchise are investing the time to research franchising opportunities and to find opportunities that require the skills an entrepreneur possesses.

Jeremy Leyva, another Monthly Coupons franchisee, spent considerable time researching his options. "After talking to many current Monthly Coupons franchise owners across the country, I decided to invest in a franchise," Leyva says. "Monthly Coupons has given my family the financial freedom I was looking for, and because they offer ongoing support, my business continues to grow and to become more profitable.”


Source:
Small Business Administration. Winning Ideas for Small Business Success. <http://www.sba.gov/gopher/Business-Development/Success-Series/Vol1/Win1/win11.txt>