Startups

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Building a business from the beginning was never an easy task and today it might be more difficult than ever, simply because there are a lot of competitors in every industry. Also, a lot of money is required for the initial investment and the risk of losing it all is very high. However, there is a trend that has been interesting to many new investors in the recent decades, called Startup Company, better known as simply Startup.

It is a high-risk business that features a service or product, aiming to fulfill a certain need amongst other elements in the marketplace. Since its existence is relatively recent, most of these businesses are technology oriented. Some of the best-known former startups are Airbnb, Uber, Snapchat, and Spotify. The success of these enterprises and their enormous expansion worldwide explains how effective startups can be and how far they can go if managed properly.

The beginning of the startup is usually initiated by an individual or a smaller group of people with an idea that targets one specific need. They have a vision of how to make something easier and more convenient than it is now and it has never happened before. The startups are usually funded by firms or private investors who believe in the idea of the inventors and they are willing to sponsor it. Once the startup is funded, it is ready for the launch, after which it can succeed or fail.

Startups and small businesses seem quite similar in case you don't know a lot about either. However, the key differences between them are that small business are more interactive in a small market, they appeal to a specific niche, locally. They are also funded by non-investors such as grants, loans or founder’s money. Small businesses are focused on long-term success and stability, while startups are far riskier. 

Startups are no longer startups when they are acquired by a large company, have a revenue over $20 million, have a company of over 80 employees, over five board members, when the founders sell their company shares.

As technology, Internet and everything related to these two are in constant and rapid growth, there are no signs of startups losing their popularity. Instead, it could be even more increased by new people with amazing ideas that can bring major differences to our everyday activities with new products and services that we couldn’t think about having before. 

Investments in Franchises

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According to several IFA studies, franchise sector had a growth in the average annual job of 2.6%, which is approximately 20% higher than other types of businesses in the past 6 years. These results come, of course, from the benefits of franchise investment, which offers a completed business models, guidance, training, and support – everything that a new inventor needs. This opportunity to create a company, grow and profit faster than ever seems very attractive to people who are tired of having bosses.

However, quick ways to prosper always come with risks and franchise is no different. In case you are considering this idea as well, there are several factors you should consider before making the first step.

Determine if the franchise is an appropriate business approach for you. You will be required to take someone else’s already-developed strategies, plans, products and/or services, without making major changes. Of course, you can adjust and customize certain aspects but still stay loyal to the original brand.

Are you ready for funding? The franchise includes many costs that you will need to cover, starting with the initial fee that usually ranges from $15,000 up to $50,000, which sometimes includes the training cost. In the USA, Subway franchise fee is $15,000, however, in order to open a Subway restaurant, you would need to invest from $116,000 to $263,000.

Finding an affordable, yet attractive location. This is another important step that you would need to ensure in case you are planning to invest in a business that requires clients’ visits. In case you need a large space, the cost is going to be higher and you cannot suit yourself at some place outside the city where no one will come by.

Apart from these key components that will somewhat clarify how the beginning of franchise business works, you need a whole list of other factors to consider, such as recruitment of qualified staff, licenses, contracts, new ideas, adaptation to the methodology of the company you will invest in and others.

Overall, franchises can be great investments if you are determined to put a lot of effort into the startup, growth, and maintenance of your company. It is a great opportunity for responsible people who can stay firm and know how to make smart first moves, which might be the most significant factors for the future of the company.