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Starting a business
is fraught with peril; some business, some personal and some legal. The
most important business pitfalls to avoid based on my perspective in
working with a large number of start-up companies over the years are
lack of technical and administrative know how. Falling into any one of
these traps can mean the difference between success and failure or the
ability to attract money to fund the growth of the business.

A lot of
entrepreneurs have sellable business ideas but lack the operational
methods of executing these ideas. Some, whose businesses are
flourishing, become choked with the burden of monitoring when their
businesses expand. The drive to be one’s own boss can blind some
entrepreneurs to the pitfalls of owing a business.

Entrepreneurs can
reduce expected pitfalls in starting a business by identifying with
similar successful business and buying into it. I am arguing for
franchising. I have noticed few Nigerian entrepreneurs know about
franchising and those who know about it are not interested for the fear
of slaving no end for the franchisor.

Franchising means
buying into an already established business, opening a storefront or
territory under the name of that business and operating within the
boundaries established by the franchisor. It is a method a company uses
to distribute its products or services through retail outlets owned by
independent, third party operators. The independent operator does
business using the marketing methods, trademarked goods and services
and the “goodwill” and name recognition developed by the company. In
exchange, the independent operator pays an initial fee and royalties to
the owner of the franchise. The company that grants the independent
operator the right to distribute its trademarks, products, or
techniques is known as the franchiser. The independent, third party
business person distributing the franchiser’s products or services
through retail or service outlets is called the franchisee.

All over the world
people are choosing to run franchises instead of floating new
businesses as with franchising all the basic market surveys, research,
and business plans are already in place and working. So, entrepreneurs
young and old choose to become franchises of a running and profitable
chain and be their own bosses. If working for a company is not your cup
of tea then consider franchising as a business module, it has many
benefits:

1. When you take up
a franchise you are taking on a business that is already flourishing.
The business module is complete in all respects and any problems have
been ironed out by the person who first established the business. What
you get is a ready made package that just needs to be run.

2. By franchising
you get not just a business by all the support you need in terms of
marketing, customer relations, accounting, staff training and
deployment, as well as in the day to day running. You become part of a
local or global group that networks and interacts on all aspects of the
business.

3. Solutions to
hitches or problems encountered in business are always on hand, the
franchise chain will lend complete technical support and any other
assistance required. The chain will function as a single unit as far as
technology, machinery, group branding, and advertising and so on is
concerned.

4. The progress or
expansion in the business will occur as a collective group and
professional consultations and so on will be carried out for the whole
group of units. This means the think tank is much large as also the
resources.

5. Aspects like
future plans, product research, buying power, expansion of activities,
market surveys, and more will be done as a chain and so you will just
reap the benefits. The risk will be collective and not individual as in
other business modules.

6. You will be your
own boss and be working towards securing your own future. The devotion
and long hours will help you reap many benefits and respect.

7. With franchising
your staff would be trained by the franchise major and so what you will
get is people who can function well without constant supervision and
watching over. As the world innovates your business will keep abreast
of the changes.

World wide business
gurus advice that “a franchising business module is the safest and most
dependable choice in business entrepreneurship.” A franchise can make
dreams come true, of owning and running your own business without the
accompanying heartaches.

As with anything,
there are things you gain and things you lose. An independent
franchisee often has to follow the guidelines set forth by the
franchisor

Franchising your business also can be a way of making money,
expanding and reducing aches that come with business expansion. I
advice established Entrepreneurs to consider expansion by franchising
their businesses. Franchising is the way to go for start up
entrepreneurs especially the once without technical know how.