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3.1Businesstopic:Startingabusiness;3.1Businesstopic:Startingabusiness;Herearethreedifferentwaystostartyourownbusiness.Workinpairsandthinkofoneadvantageandonedisadvantageforeachapproach.;;Reading
1.Thetablebelowliststhingstorememberifyouaresettingupanewbusinessasasoletrader.Readthearticleandcompletetheright-handcolumn.;Wewannaholdyourhand
Takeabigpieceofbusinesssense,addsomeentrepreneurialspiritandvoila!Youhaveafranchise.Startingupafanchisecouldbeaveryclevermoveforthosewhowanttoruntheirownshowbutdon’thavetheexperienceorthedesiretosetupinthedangerousandoftenshort-livedworldofthesoletrader.
Butit’svitaltoknowwhatyou’regettinginto.Franchisingis‘thegrantingofalicencebyoneperson(thefranchior)toanother(thefranchisee)whichentitlesthefranchiseetotradeunderthetrademarkortradenameofthefranchisorandtomakeuseofanentirepackage.
Soisthemainconceptbehindafranchisethatofacompromisebetweensettinguponyourownandworkingforacompany?‘Absolutelynot,’saysDanArcher,headofmarketingattheBritishFranchiseAssociation.‘That’saludicrousover-simplification.Itisrunningyourownbusiness,butit’stakingawaysomeoftheriskandbringinginthesupportofotherpeople.’Hepointsoutthatonly0.9%offranchisesfail,comparedwiththemajorityofindividuallyownedbusinesses.;Butbeingafranchiseeisunlikelytosatisfythemostentrepreneurial.Itdoesn’tsuitpeoplewhodon’twanttofollowthesystem.WilliamEwbank,theheadoffranchisesalesatDomino’sPizza,says,‘Ifyou’remassivelyentrepreneurialthisisn’tforyou.It’sadiscipline,aclubwithrules.Thereissomeindependenceourfranchiseescanchargetheirownpricesalthoughwe’restrictonmenucontent.It’srunningabusinesswithhelp.’
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