In order to efficiently and quickly organize your own business normally requires not only certain skills and knowledge, but also considerable financial resources.Now aspiring entrepreneurs have two ways of organizing their affairs.The first of these involves the creation of an independent business and its promotion.The second is to work with a company that is on the market for a long time and has already earned a reputation.In economics, this is known as franchising.Without investments in this case do not work, however, significantly reduce the cost of everything is still possible.Using a franchise, the cost of which is very different, often allows novice businessmen to circumvent a number of problems that are inherent in new business.Franchising without investing has its advantages and disadvantages.
Among the advantages, first of all, it should be noted the possibility of a substantial cost savings to open a business.The company, which sells the franchise, is also interested in the positive results, we are talking about its credibility.Representatives of the franchisor is required to advise the beginner to the correct and effective use of materials and equipment with suppliers, marketing and other issues.Thanks to the development of the company is due to attracting foreign resources, changes in profits in its balance sheet is very fast compared to other methods of doing business.Plus, you can earn without investment also due to the use of advanced trademark.This includes its marketing and advertising schemes.At the same time the consumer goods and services often have no idea who their supplier.
There are also disadvantages.If it is good to understand, it can be concluded that in principle the franchise without investment is impossible.How not cool, but for the very franchise will have to pay.In addition, the entrepreneur who decided to go to partnership by business, becomes a hostage of the franchisor in terms of the limited choice of its own development strategy.Experience shows that a contract to purchase the franchise signed on quite a long time, so cooperation is very difficult to stop.If the entrepreneur so tired of doing business, and he decides to stop performing its obligations, it will be applied to the sanctions.
Despite that, without investment, franchising is now very popular in many countries worldwide.As the statistics of American researchers in the United States during the first year of the fall in the average of three of the four established enterprises.At the same time, more than 85 percent of the companies operating on a franchise system, be sure to survive and feel very well.Theoretically, a franchise may be nothing to pay and get it for free.However, as practice shows, this is hardly a valuable asset, since such companies are almost not viable.The company is not able to sell your business, it is unlikely to sell products can.A striking example of such a business idea without investing a marketing network, which is unlikely to bring the desired income.
