Become an Instant Businessman by Using these Two Shortcuts
Looking to get a business started before the end of the year? Perhaps you’re just dying to start a business soon. Entrepreneurs are innately impatient, especially those that already have multiple businesses. The processes of starting a business, including a business plan, searching for a location, applying for permits and licenses – all of these can be painstakingly long for some.
You can use these two shortcuts to begin a business that you can make big. Getting a franchise or buying an already existing business will allow you to hit the ground running and gain profit faster than starting from scratch. Let’s discuss both options.
Buying a franchise
With a franchise, the franchisor (parent company) creates a method to operate a business and sells licenses to franchisees, which lets them start their business location. You will need to pay a franchisees fee to buy into the franchise and use its name, system, and trademarks. You will also need to pay continuous fees and royalties as long as you’re active.
Franchisees are responsible for opening the business, but you’ll receive guidance and support from the franchisor to assist you both during and after launch. This makes a franchise one of the best shortcuts to starting a business.
McDonald’s is known as one of the most famous franchises around while also being one of the most expensive. Attending a trade show or going online to search for franchises in your area are some of the easiest ways to learn about lots of franchises fast.
After expressing interest in buying a franchise, the franchisor will give you a Franchise Disclosure Document (FDD), which is a massive document that includes the background of the key players in the franchise, initial and ongoing costs, any bankruptcies or lawsuits of the system, financing options, what assistance the franchisor provides to franchisees (such as marketing, training, discounts on inventory or supplies, etc.), territory and intellectual property information, and the franchisor’s audited financial statements.
Buying an existing business
If you’re starting a business from scratch, you need to process everything from finding a location and identifying suppliers to producing a brand and hiring staff. Buying an existing business lets you circumvent many of these steps. Existing business usually already has a track record and assets, plus it’s easier to get a loan to purchase an existing business than when looking to start a business from scratch.
Identify your skills and interests before you start looking for businesses to buy and what industry you fancy going into. Is there a particular business in your community that you’re interested in? Contact the owners and see if they are open to the idea of selling. You have nothing to lose!
Once you’ve identified some potential businesses to buy, next is to do comprehensive research.
Find out why the owner is selling. Or is there an issue with the business? What business assets are included in the purchase?Who are the key employees? If they are essential to the business, ensure that they will stay after the purchase.
What type of brand recognition does the business have? Investigate its reputation, including online reviews, social media,and others, to see if the business has a positive image. Check out if the business has a webpage; if not, add register domain to your to-do list after acquiring it.
Review all the business’s financial information and find out any unpaid loans, liens, or lawsuits.Look at licenses, contracts, permits, trademarks, and other legal documentation. If there’s intellectual property involved, ensure that it’s part of the sale.
Even if you’re impatient to start a business, you need to ensure that you follow the right process and steps. While these two shortcuts will shave a lot of time, there’s no “quick fix” for business ownership, so you still need to get your hands a little dirty.
If you’re buying a physical business that doesn’t have an online presence yet, ensure that you register domain for it as soon as possible. This way, you’ll be at the starting point to build a website after your purchase.