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How easily could you sell or franchise your business?

So many self-employed people believe that they are running a business when if fact they have just created a job for themselves that would not survive without their presence. A business needs to be a system that works even if you are not present and considering the franchise system seems to be an excellent way of determining whether you have an effective and efficient system of business that works. Be honest with yourself….how much could you expect someone to pay for the business system that you have developed? Is it franchisable?

This week I have heard the following statistics several times: 80% of businesses fail in the first 2 years….however, 75% of franchises survive the first 2 years….the reason is clearly that franchises have bought a system of doing business that has been tried and tested and works! Banks are much more likely to offer you business loans if you are buying a franchise because there is less risk involved.

 It’s not so easy to get accepted by a franchisor though. For example, to get a McDonald’s franchise, you need more than just money… you are expected to train in their restaurants at your own expense for at least 9 months and then they accept only 1 in a thousand applicants even though the cost of the franchise may be as much as £100,000.

Ray Kroc, the founder of the McDonald’s franchise certainly developed an amazing business system….it is the business system that makes the owners multi-millionaires and not the actual product……it is the business system that costs hundreds of thousands of pounds to buy….not the products. Ray Kroc was able to develop a system that was so detailed and clearly described scientifically in order to produce the exact same results every time.  

How well developed is your business system? Would it work without you?

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