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Michigan Business Information
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Michigan Franchise Opportunities
- Franchising has become an increasingly attractive option
for entrepreneurs
that are interested in starting a new business.
Individuals looking for a change in employment are
often attracted by the possibility of starting a business, whether
it is simply to be their own boss or with the aim of becoming a
millionaire. Franchising can be an option open to entrepreneurs who
wish to set up a business using a lower risk path.
A good bit of research is required before making any
smart business decision in Michigan or Nationally. Before making the
leap into a Michigan franchise, make sure you investigate the franchisor
thoroughly before you sign on the dotted line.
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Get a Good Lawyer and a Good Accountant
Investing in a franchise can be expensive. An accountant can
help you understand the company's financial statements, develop
a business plan, and assess any earnings projections. An
accountant can work with you to pick a franchise company that is
best suited to your investment resources and your goals. |
When it works, franchising in Michigan works well.
Though the risks involved in being a franchisee are lower than when
starting your own business, franchising is not a ‘sure thing.’ All
business startup's carry a risk.
A checklist that will help you ask current and former
franchisees questions that will help you make a decision on what type of
franchise to get involved with.
Make sure that you ask a number of franchisee's these questions
for each franchisor you are considering.
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How long you operated your franchise?
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Where is your franchise located?
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What was your total investment?
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Were there any hidden or unexpected costs?
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How long did it take you to cover operating costs
and earn a reasonable income?
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Are you satisfied with the cost, delivery, and
quality of the goods or services sold?
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What were your backgrounds prior to becoming a
franchisee?
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Was the franchiser's training adequate?
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What ongoing assistance does the franchiser provide?
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Are you satisfied with the franchiser's advertising
and marketing program?
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Does the franchiser fulfill its contractual
obligations?
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Would the franchisee invest in another outlet?
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Would the franchisee recommend the investment to
someone with your goals, income requirements, and background?
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Franchising works best when the skills of the
franchisee (this means you!) meet the needs of the
franchisor. In addition - the franchisor’s offering must
give the franchisee an outlet for his or her skills and
expertise. The successful franchisor will screen his /her
franchisees very carefully to ensure success. |
The first step in considering franchising is to
research. Michigan franchises operate in businesses ranging from travel
agency, business consultancy, print and signage through to the ever
popular franchise restaurants (like Big Boy's and Subway's) and
investment levels can range from next to nothing to hundreds of
thousands of dollars.
Next ask yourself some questions about
"Demand" in your area of Michigan
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Is there a demand for the franchisor's products or
services in your community?
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Is the demand seasonal? For example, lawn and garden
care or swimming pool maintenance may be profitable only in the
spring or summer in Michigan
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Is there likely to be a continuing demand for
the products or services in the future?
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Is the demand likely to be temporary, such as
selling a fad food item?
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Does the product or service generate repeat
business?
Finally ask yourself some questions about
"Competition" in your area of Michigan
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What is the level of competition, nationally and in
your Michigan community?
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How many franchised and company-owned outlets does
the franchisor have in your area?
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How many competing companies sell the same or
similar products or services?
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Are these competing companies well established, with
wide name recognition in your Michigan community?
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Do they offer the same goods and services at the
same or lower price?
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