If you have thought about building a new business or dry cleaning business, you should also consider buying an existing one. For one, it is a lot faster to get going and hit the ground running too. Building a new business does take time and if you have it, great, you can build something exactly the way you want to. But for most people today, they want to get into a new or existing business quickly and start earning an income quickly too. So buying a business is a very appealing way to go. The research you do on buying a business should include franchise systems and businesses because they are a great way to go especially if you are new to business ownership.
When you first mention a franchise, most people's first reaction is, what restaurant are you buying? Well, although the fast food industry has been a large part of the franchising systems, it is not the only one. There are thousands and thousands of businesses that are franchised and you might not even know them. From the corner store you buy your gas at, a local pizza restaurant, to the large chain stores and restaurants you go to on a regular basis. They are all over the place, why? They are usually a good investment for the buyer because they are usually easy to duplicate and be profitable, at least compared to starting a business from scratch. Fast Food franchises are one of the more popular franchise ventures, but when it comes to buying a business, franchising is a very good way to go.
When you have decided on the type of business you are going to buy, then it is time to really get into the details. Buying a dry cleaning business is the same as buying any other business, you need to do your homework. Are you looking for something that has brand recognition, or are you looking for something that has more of a generic brand to it that you can build on. Some people also prefer to buy a non-franchised business and make it better.
When you talk about franchising a business, people normally associated it with a fast food restaurant. Fast food franchises have been around for a long time and are probable one of the more popular franchise business to buy. If you have been considering getting into the restaurant or fast food restaurant business, franchising is a great way to do. Franchising a fast food restaurant is not too hard to do and brings a lot of brand recognition too. You have probably been reading through the many pages of entrepreneur magazine or other franchise magazines and online sites, wondering if the fast food business is the right business to buy into. As a side note, the fast food industry has been one of the better industries lately too. With the recent recession issues today, the Dry Cleaning industry has actually seen growth. Actually, on average, dry cleaning businesses have seen steady growth for about the last 50 years or more.
If you are considering opening your own business, you will need to have a good location, unique content, unique services, great advertising and a great staff just to get started. Not only are there a lot of start up risks involved with new businesses, you have to deal with developing product and name recognition. If you decide to buy into a dry cleaning franchise instead, which is in my opinion, a better way to go, you get to build on the existing brand and name recognition that is already in place.
There is additional costs to investing into a franchise and that usually revolves around the franchise fees. In most cases you will get more out of the additional costs then what you pay. Those benefits are around advertising, marketing, training, brand recognition and more. The parent franchiser has been doing the business a lot longer then you and knows a few things about the dry cleaning industry and you can use that experience and knowledge to your benefit.
We all know what the market and economy has been like for a while now and buying into a business in today's market may not seem like a great idea. Even finding a bank or someone to lend you the capital to do it is difficult, in most cases. The exception to the rules in business usually are around either a great new idea that catches on like wild fire, or an established and proven business or system. Even in a slower economy there are still many business investors that are more then willing to back you in a franchise and if they don't lend you the money, it will just go to someone else.
Determining your startup costs is another part of the business investment you need to consider. With a franchise business it can sometimes be a little unclear, so it is wise to spend the time to figure it out. A franchise adviser or consultant would be a great help in cases like this where you are not sure, even if you are sure, it is good to get a second opinion. If you are buying an existing business then the start up costs will include the cost of the sale and inventory, usually fairly simple to figure out. The other part of the start up costs are around the franchise costs, either include an initial franchise fee and a royalty fee. The Franchise royalty fees are usually based on gross sales and paid to the franchiser at specified intervals throughout the year. Knowing those costs ahead of time are difficult in a newly built business. A dry cleaner business is no different then any other new business, you need a location that may include building a stand alone building ( usually the most costly ), or leasing space in an existing building or commercial complex. So, knowing your start up costs will greatly depend on if you buy, build or take over an existing business.
Lets talk advertising and marketing. Dry cleaners don't normally advertise on a national level, they are more locally targeted but will still benefit from a franchise marketing system. Franchised business don't always advertise nationally, they advertise to their client base the best they can or know how. If you were a new business owner, how would you advertise? You would probably start somewhere like the radio and go from there and see where your cost benefits are. That process is time consuming and can be expensive. A Franchise system will or at least should show you how to market your business and advertising for a dry cleaner might seem like shot in the dark to you, but for the franchiser, they already know what works and will show you.
There are draw backs to owning a franchise over owning your own business. One is the maintenance and franchise fee costs. You have to continually pay for the privileged to be a part of the franchise network. Some people see this is a down side to franchise ownership, but I actually see it as a benefit. You pay a nominal fee to be a part of a larger cooperation and network of business, support and advertising that you may never achieve on your own as a sole business owner. Then again, if you do decide to franchise your own business or business idea, then you are talking about managing the entire franchise network yourself. There are a few ways to look at it, but in the end, the benefits of buying into a franchise far outweigh the negatives.
In the end I recommend a franchise dry cleaners or buying or building a stand alone business. This is mostly applying to someone who is new to business ownership too, someone with more experience under their belt may not find it as challenging for them. Owning your own business is not a small task, but if you do it right and plan it out, it will be worth your time and effort.
