How Do Franchises Deliver Business Success?

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by Alistair Guilliard

 An daring question, I admit. It is almost without doubt a question to raise some hackles with some 'entrepreneurs' who currently run a franchise

Leaving the controversy alone for a moment, it is a question that I have often pondered when looking at why people go for the franchise route when setting up their own business. The merits of a franchise are certainly understandable; creating an independent business where there is an absence of experience determines that for some, franchising creates a faster route to setting up together with a business that has already worked elsewhere. To suggest that you don't have to 'reinvent the wheel' when setting up your business wouldn't be far wrong, as the groundwork and foundations have already been laid.

But let me just contradict that for a second. There is the belief that people are buying a business model that really succeeds, or is reality something different? What's required for business success? Does a business model that ensures success even exist? So can anybody just buy a franchise and expect that success is all but guaranteed? Do franchisees stand a better chance at success than someone setting up an independent business?

Too many questions? Right, we need to study this in more depth and attempt to comprehend the components of a successful business. I'm going to reference one specific source, on account of the different sources also referenced by Moyak K. Mason, when trying to understand what makes a business succeed or fail. Suffice to say, that research conducted for the paper, 'What Causes Small Businesses to Prosper?' provides enough data to suggest that whether a business succeeds or fails has little to do with management tools or techniques. Moreover, a strong understanding and grasp of business basics is the most likely platform for a successful business than any management tools. When all is said and done, a tool or system is nothing more than that especially if not implemented properly, and is never going to be a panacea or silver bullet for business failure.

Business that do achieve success, display a number of qualities and practices:

They are centred on standing out in the defintion of their strategies.
They are also consistent in their execution, rising and meeting customer demands, and providing staff with the authority to make the decisions required that will help them remain agile in changing market conditions.

Their internal cultures have high performance expectations, who motivate their employees and management, and reward them not only financially but also psychologically.
The internal organisation is built so that unimportant matters are overlooked, but zoom in rationalising the business processes, cutting down administration and over-management. Simple is where it's at and the promotion of cooperation between internal departments and personnel.

Taking into account that the numbers of business that fail is reportedly just as high for franchises businesses, of what real advantage is the franchise model? A 1995 study conducted by Dr. Timothy Bates of Wayne State University tells that the frequency of failure for a franchise business was in excess of 30% yet those exact same companies also realised much lower margins than the independents. Given the restrictions that a franchise model places on the franchisee, the ability the be creative as a successful entrepreneur would hardly have been possible under the rigidity of such a model. Of course, some may argue that such creativity should be coming from those who are the franchisors, but then you have to ask; where does an entrepreneur fit into this?

The positive aspects of a franchise model turn rather less than beneficial when weighed against the rather harsh picture painted by statistics that haven't been produced by some national franchise association. The level of credence you give to which ever set of numbers depends on how much vested interest in the franchise model you believe a national franchise association has! I'll let you work that one out for yourself.

Ok, so a franchise is apparently not as great as is made out, where do budding entrepreneurs, looking to make their fortune, turn for a safer business model that addresses their concerns over 'getting it wrong'?

Well, unless your mind is already made up that you really must open another multi-franchise restaurant, the chances are you're probably just looking to create some wealth for yourself whilst minimising the risk that inevitably comes with starting any business. If so, then you might well consider a business system and model that guides you through to constructing a business that will achieve success, minus the royalties and regulations that a franchise would impose would be preferable? What about a system that plugs you into the best training and mentorship available, whilst still allowing you to retain your entrepreneurial creativity? A platform that automates all the telling and selling, as another option to franchising, releasing you to conentrate on driving potential customers to your business, with an average 80% profit margins, but without the punitive costs and royalties, a franchise alternative is a reality.



Is The Franchise System Flawed?
Why Wait 3-5 Years To Break Even? Discover An Alternative To Franchsing That Is Fast To Set-Up, Automates Your Marketing and Delivers Fast Return On Investment With Full Training.
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Article Source: http://www.articlesphere.com/Article/How-Do-Franchises-Deliver-Business-Success-/196746

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Cheap Airline Tickets: Great Ways To Save

A round-the-world trip remains the world's greatest journey. For two out of every three people, this is the ultimate travel experience, according to recent research. Needless to say, in a world obsessed by travel, travelers and travel agents are both looking for the cheapest tickets and airfares available.

Cheap airline tickets, in most cases, can be obtained from wholesale dealers and discounters.

If your requirements are simple - you want a round-trip ticket from one place to another, you have a particular airline on your mind and you have definite dates; then you can go directly to the source - to the ticket discount agency which buys cheap tickets in bulk from wholesalers and consolidators.

In real life most trips require more planning, and most people need a help from the agent to figure out what would be the best air ticket solution for their particular case. Cheap airfares to a particular region can often be found with local airlines that specialize in that country. Sometimes an agency that operates and retails tours to a particular country will have a discount agreement with the national carrier and will sell discount tickets on that airline.

With a bit of research through travel magazines aimed at the particular country of your choice, you can often find agencies dealing with national carriers for that country. For the cheapest possible airfare to many places the most affordable prices are often found in local travel agencies that deal with a particular destination selling round-trip discount airline flights - most likely to the capital of that country and a few main cities.

Sometimes you can find a really cheap air ticket with a discount retail agency that specializes in trips to a wider range of destinations or to multiple destinations. Through the sheer number of tickets that they sell they can command a reasonable discount. However, keep in mind that most advertised prices do not include taxes, luggage fee and airport tax, so the cheap airfare may end up being not so cheap. Best to read the small print to clarify exactly what you are getting before you purchase a ticket.

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Pick A Hotel With Personality!

What does individuality mean in the hotel industry? As far as boutiques are concerned, it’s not just about being a little bit quirky; hanging modern art on the walls, sticking some designer chairs in the rooms or making all the fittings stainless steel. It’s about a design theme that runs through the hotel from start to finish and affects everything from the cushions on the sofas to the dessert menu in the restaurant.

Location

Where does the inspiration for this individuality and personality come from? For some hoteliers, it comes from the location. It’s unsurprising that boutique beach hotels are clean and simple, bringing the colours and textures of the coast into the building and using architectural design to allow guests to feel at one with the sea; large windows, folding doors and seawater pools for example. In contrast, small hotels that are based in cities often reflect either the present-day energy or the historic past of their location. Through the use of rich colours or minimal materials, antique furniture, period art and a variety of textiles, designers can create a hotel that truly reflects its location.

Culture

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Community

A true boutique hotel becomes an intrinsic part of the local community, and this is part of its individuality. Chain hotels are just places to stay; boutique hotels are places to be – whether it is locals using the restaurant or trendy city workers drinking in the bar; using the produce from the farm down the road or sharing spa facilities with a local retreat, boutique hotels make a real effort to integrate into their local community rather than being set apart from it.



Sincerely

Roger K. Olsson