Restaurant Franchise Opportunity

Well here we are in the middle, perhaps even the bottom of the business cycle. Yes, we call that a recession and some likened this recession to more like a depression and whether or not that is so is something economists and political pundits maybe arguing for years to come.

Nevertheless, here in the franchising industry we are not without our share of ups and downs, and while we generally fair better than most of the moms and pops out there, our franchisees and franchise systems still take some torpedoes during downturns in the market place.

Many who are laid off are wondering if now is a good time to get into their own business, a franchise business opportunity? Here are some thoughts on the matter from a retired franchisor, yes that's me.

In my many years in franchising I'd been through the ups and downs in the marketplace, we always managed in the down times and actually made some good headway against the competition, and during the uptimes, well, it felt like a rocket ship sometimes.

So, back to your question; "Is This a Good Time to Buy a Retail or Restaurant Franchise?" Well, think about this for a second.

It takes a while from the time you buy a franchise until you actually open it. So, if that time period is 6-8 months and you expect a rebound in the economy by then, well, I guess you are answering your own question here.

Meanwhile your competition is running dangerously low on cash flow and will be extremely weak as you enter the market and ride the up-cycle in the economy. So, please consider this.

"Lance Winslow" - Franchising Resource. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.

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There are just as many good reasons to buy a franchise as there are not to. Whether or not you start your own business or look into buying a franchise depends on the type of person you are, how independent you want to be and how much experience you have in running a business.

One of the biggest advantages of buying into a franchise is the name recognition. The public already knows the reputation of your business, the quality of the food and exactly what to expect. Customers who know what to expect before they walk in the door are rarely disappointed and will keep returning. The franchise often provides their favorite type of cuisine or a best-loved dish, prepared exactly the same way as it always is. It provides a consistent experience.

If you don't have extensive business experience and marketing isn't your strong point then you may want to consider a franchise. It will offer you a proven, successful business model and your advertising is already conceived and executed for you. You have support from the corporate office and can consult with them on any problems you may encounter. The collective buying power of the corporation means you may have lower prices and thus, lower overhead costs. It can also be easier to recruit staff since the work force is familiar with the name and knows what to expect.

There are a lot of reasons to buy a franchise and that is why they are so popular. But there are also drawbacks that you must consider. Franchises have a certain business model that you must adhere to. You are presented with a restaurant that has a certain menu, decor, floor plan and rules to follow. If you would like to offer something a little different from the menu or change a recipe then you're out of luck. Franchises depend on consistency, not creativity and you will not have any flexibility when it comes to your own ideas about how to develop your business.

You will have to share your financial information with the franchiser and pay royalties every year. You will get support in advertising and day to day operations but you are paying for this privilege through your franchise fees. These royalties vary with each franchise but they can represent a substantial portion of your profits. A franchise has higher start-up costs than an independent business, often making them inaccessible to the average first-time business owner.

While you do have field support from the corporate office you can become vulnerable if the franchise fails, leaving you out in the cold. If you start your own restaurant then you may have a tougher time in the beginning without expert support but in the long-run you will have more freedom and flexibility and possibly more profit potential.

Buying a franchise also means you have an immovable wage scale and incentive program. You might find a real gem in one of your wait staff, someone you think would do well if promoted. Better check out those personnel rules though, because the franchise may have schedules and requirements that don't suit your needs. A truly motivated and superior server may not be able to be rewarded in the same way as a server that performs below your standards.

Think carefully and do your homework before buying a franchise. It can be the best move of your life or turn into a real headache and you can read about the negative franchise experiences of many people on the Internet.

Starting a restaurant does not have to be difficult. If you take the time to get a little experience and do some thorough research it will be no problem for you to take the independent route. A franchise may seem like the easy option in the beginning but if you put in the effort and develop your own brand and business model you should see greater rewards in the long run.

For our next article on Restaurant Menu Planning and to learn more about some of the expert guides helping newcomers open their own restaurants visit -

Article Source: http://EzineArticles.com/?expert=Patrick_Sutherland

It's 2010. The economy is still in the crapper, and investors and consumers alike are slowly beginning to earn back the bottom that fell out of their 401(k)'s and other investments in late 2008 and most of 2009.

The average work-a-day executive that has spent a decade or more toiling along, towing the company line and dutifully climbing the corporate ladder, only to be told it was leaning against the wrong wall and their comfortable paycheck is in danger, have started to question the logic of the entire foundation of their professional career.

Mid-level management is one of the first expenses to be pruned when companies are tightening their belts; as a result more and more college educated, talented individuals are finding themselves with reduced salaries, questionable job security and increased work requirements just to stay 'in the game' for a competitve performance report.

Is this you? It could be, or you could be just one of the untold thousands of people daily who are striking out on their own, leaving the office politics and unforgiving work environment behind to be their own boss.

So where do you start? Well, if your journey is anything like mine, you probably start thinking about the types of opportunities that you see every day. Sandwhich shops with $5 dollar foot long marketing campaigns, pizza delivery franchises that have landmark Super Bowl advertising budgets, restaurants that use cows to pitch their chicken sandwhiches. The list goes on. The economy may come and go, but food? People always have to eat.

Well, before you jump headfirst into that restaurant franchise opportunity that seems like a guaranteed success, I wrote this article in order to give you three crucial first steps that will help get you started on the right foot.

1. Market research. Just because there isn't a particular restaurant in your neighborhood and you really think there should be, doesn't always mean it's a good idea. In fact there may be a very good reason there isn't one in your neighborhood! (and market research will tell you this) Invest some good, honest, mental 'sweat equity' in determining what the best location will be for your restaurant business opportunity.

This will save you a tremendous amount of heartache in trying to drive traffic to your location. Some excellent free sources of market research? The Census Bureau, Your local Chamber of Commerce, The US Department of Commerce, Local Librarians, Trade and Professional Organizations, as well as Trade Publications are all excellent sources of Market Research.

At the end of the day though? One of the best indicators of the type of demand (and traffic) you can expect at your restaurant is man-on-the-street surveys. If your budget is limited and you can't hire a firm to do this, (and there are plenty of firms that will) Take the time to go to the surrounding neighborhoods where you are considering setting up shop and take the temperature of the local community by simply coming up with a three question survey and going door-to-door talking to people that actually live there.

Not only will this help you guage the local level of interest in your restaurant, it gives you a great opportunity to do some grass roots first-stage marketing before you even open your doors.

2. Give up on having a social life for 12 to 24 months. It may sound strange, or maybe not, but if you are used to having a very full social calendar and are looking to start a restaurant franchise, you're going to have to choose one over the other.

In the early days of your business you are going to have untold amounts of stress, you are going to probably grow more gray hair and may feel some days like you aren't going to make it. Especially after you make your first big mistake. You will have employees that will let you down (good people truly are hard to find), you will miscalculate inventory orders leaving you short on some high-demand foods and left with a fridge full of expensive spoiling food that isn't selling.

And you will just get plain frustrated. Having a social life in between these stressors will be downright impossible in your first year or two. Especially if you are truly bent on success. So just take that first step by telling your friends and family that you are going to be unavailable for the next 12 to 24 months for most social occaisions (with the exception of truly important events like Weddings and Christmas of course). Setting the expectations in advance will truly help your friends and family understand the journey you have begun. And they of course, want to see you succeed!

3. Finally, and this, in my opinion, is probably one of the most important steps to take: Learn how to market on the Internet. There is a HUGE opportunity for competing in the local market on the Internet. In fact, it is easier to own the first position on Google for your particular local geographic market than any other place.

The local market for the Internet is very under utilized, simply because most local business owners that cater to a local market (like restaurant franchise opportunities) don't understand the in's and out's of getting on Google Local Search results. Have you ever searched for a local business after hours only to find their phone number and location listed on a Google map, but no hours posted, maybe a weak website, no menu, etc? Well, simply understanding some basic concepts of Internet Marketing will enable you to truly dominate on a local level whatever market you choose to go after.

Your dinner menu, weekly or nightly specials, event-based discounts, all are just some small examples of ways to attract business to your restaurant franchise, or any local business for that matter.

So in summary, the three crucial steps to take before starting that restaurant franchise opportunity? Good Market Research, No Social Life and Learn how to Market on the Internet. I happen to have a system in place for doing the third step, and I invite you to check out my website, where I'll show you how you can leverage the Internet to dominate your local market. Check it out at my website http://realpeoplerealresults.biz

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