Many Americans dream of owning their own business and be in control of their fate. The only thing is that very few folks will really dive in and take the risk to become their own boss. The reason for this flesh back :. It is the fear of not having

exchange rate for the failure of a startup company varies from person to person. However, Scott Shane of Case Western Reserve University has often cited his data. He said that the failure rate for one year are 25 percent and 10 years of failure by 71 percent. What do these numbers mean? If four companies begin in one year, one company is bound to fail in the first year. 71 percent of companies currently open will be closed for 10 years.

Understanding Entrepreneurship in franchising

The failure rate is high, it is not surprising that very few people will try their hand at it. Many do not know that the way to become a business owner to start a franchise. Franchises have less of a chance of failing and are really doing well monetarily. Use the same 10-year study above, nearly 62 percent of franchises are still in business, an extremely high figure.

Why franchises being in business

Why is it that franchises being in business for more than a startup company? Franchises have a great amount of advantages that novice entrepreneurs have not, which means that the project is less risky

Five Advantages franchises

Advantage 1 -. Training and support

Franchise companies will give a new franchise owners plenty of training and support at the beginning. Franchisers get a fraction of the profits so it is in your best interest to ensure that the spin-off franchises well. Smaller franchises offering people secondary support

Advantage 2 -. Buy Company Model, not just the name of

The big reason franchises tend to last and flourish is the business model is already working. It is not just the name or trademark; it is the model itself that helps to make this franchise successful

Advantage 3 -. Bargaining

When you have a franchise, you have some negotiating with your suppliers. Independent, new business owners do not have such power or luxury and will have to earn it, unlike the franchise

Advantage 4 -. Expert Support

When you join a franchise, your company is not alone. If you ever have problems or questions, you can seek out some advice. Any franchise business you go into, you’re bound to have a few hundred people you can turn to who would love to give you advice so that you succeed. Many larger franchises will also give individual training and support

Advantage 5 -. Well capitalized

Most franchises are well capitalized, which makes them have a high survival rate. Most startup companies do not have this luxury. People who want to participate with franchises usually have just enough requirements to buy into the business.

Five Cons franchises

The disadvantages of franchises are pretty clear. Make sure to understand them before you decide to franchise business is right for you.

disadvantage 1- loss / lack of control

Independent franchises often following the guidelines set forth by the franchise including any tables to be used, wallpapers and more. If you do not want to give up that control, this will not be the business for you

Disadvantage 2 -. Less Long-Term Earnings

franchises are big business and make it rich is not always available. You will earn a decent income, but nothing like Microsoft and other Fortune 500 companies

Disadvantage 3 -. Hard to sell

When you have a franchise, it is difficult to get out from under it. especially if it appears to the parent company is in trouble

Disadvantage 4 – Potential parent company go out of business

It does not matter if your business is doing good or not; if the parent company goes under, so will you. Make sure that you choose a company that has been doing well, both in good times and in bad

Disadvantage 5 -. The possibility of getting a bad name

When a franchise does not do well, you could be indirectly affected by it. Your reputation will be tarnished just because of the name.