Is Buying a Franchise a Good Idea?
A franchise survey conducted by Sanlam in 2019 indicated that the South Africa’s franchise industry contributes just under 14% to the country’s GDP. Looking into buying a franchise for sale in South Africa is certainly worth it. Additionally, many franchises have stood strong in the midst of the devastating effects of the Coronavirus on the economy. There are many benefits of buying a franchise that has become more and more apparent.
Bronwen Barnard
02 December 2020
Summary
A franchise survey conducted by Sanlam in 2019 indicated that the South Africa’s franchise industry contributes just under 14% to the country’s GDP. Looking into buying a franchise for sale in South Africa is certainly worth it. Additionally, many franchises have stood strong in the midst of the devastating effects of the Coronavirus on the economy. There are many benefits of buying a franchise that has become more and more apparent.
Buying Franchises for Sale: What are the Benefits?
Franchisees pay the franchisor for the right to do business under their trademarked name for a specified period of time. The franchisee has access to the franchisor’s entire business process, including products and/or services, operating/training manuals, systems, and support facilities, and much more.
In exchange, the franchisee is expected to run the business within the standards set by the franchisor, and make a success of the franchise.
Other benefits include:
Support
Franchisees have the advantage of additional support from the existing franchisor; especially if the franchise has been in business successfully for an extended period. Marketing techniques have been tried and tested, the products or services offered are a success with customers, and most hiccups and school fees have been paid and they’ve found solutions for them
Growth Opportunities
Regardless of tried and tested methods, franchisees can bring in a new perspective, meaning that there will still be challenges and opportunities for innovation in the business. By understanding existing customer behaviour, growth spots, and products and service trends, franchisees can improve on the existing offerings and increase profitability by speaking to the other franchisees.
Franchise Training
The franchisor is constantly aiming at making improvements on his business. This means there is consistent training throughout the franchises using a formula that works. The foundation of this takes the legwork out of starting from scratch. Marketing has also been established, meaning there is no additional training necessary for building corporate identity and implementing strategies. The foundation of all of these can be built on.
How Do You Go About Investing in A Franchise?
If you are considering buying a franchise, there are many ways to go about it. The best way would be to visit a reputable site that showcases franchises for sale, make contact with your preferred one, and then do your own evaluations. For business buyers, Business For Sale is the perfect platform for exploring franchises!
Although there are multiple benefits for buying a new franchise, there is just as much reward in buying an existing business or even an established business. We also give our clients space to list their business or franchise for sale in South Africa. Visit our website for more information!
More Buyers Knowledge Bank
Get the latest information, valuable tips and share in the professional knowledge of business experts on buying a business
Salon Business for Sale
The beauty industry is ever-popular in South Africa, and a great choice for buyers to delve into when looking into buying an existing business. Even after the decimating effects of COVID-19 on the economy, the beauty industry is standing strong, as people prioritise self-care. There are factors to keep in mind to ensure that you develop a successful business plan, before you invest in a salon for sale.
Finance to Buy a Business
Choosing an existing business for sale is the easy part; by the time you’re considering buying a business, you already have an idea of which industry it will be in, its size, type, and all of the other particulars. The more complicated part is when it comes to applying for finance to buy a business. Very few people have the capital to use cash to buy the business, so it’s important to understand the ways and means of borrowing money and still making those dreams come true!
E-commerce Business for Sale: The Benefits
For the modern-day consumer, convenience is key. If something can be done faster and more effectively with minimal effort, that would be the option that the majority of consumers will choose. Having an e-commerce business means that your consumers can explore your product offering from wherever they are, whether at the office in between tasks or on their couch in their slippers. They don’t have to go to a store to pick and choose, stand in queues, and worry about pandemics.
Filling Station for Sale: How to Make the Right Choice
When purchasing a CORO site, you’ll need to scrutinise the terms and conditions in place. It’s imperative to know whether the lease will be renewed by the oil company, or if the responsibility will fall on you as the buyer. This will need to be discussed and agreed upon before the purchase is made. In order to receive a suitable return on investment, the buyer should plan to operate the petrol station for at least ten years.
Buying Your First Business
As an entrepreneur, you are always on the lookout for a new opportunity, or to compare your business with what is available in the market. There are lots of benefits to buying an existing business than starting one from scratch. If you are buying your first business or if you are a seasoned entrepreneur, consider the following when deciding your next venture.
Checking the Numbers
Before taking over a business, one should always conduct a proper due diligence. In fact, it is advisable to make any offer of an acquisition of a small or medium business subject to the completion of your own investigation into the affairs of the business. There are many methods to verify the numbers of an existing business and one can also use the services of a professional accountant who specializes in this field.
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