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Setting your sites: will an existing business or a brand new opportunity suit you?

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As a potential franchisee you’ve considered the benefits of investing in a franchise system with all the support and knowledge to back you as you establish your own business.

Now the choice to consider is whether or not buying an existing business will best suit you, or whether the opportunity to build from scratch has more advantages.

There is no doubt that any franchise buyer needs to be aware of the pros and cons of each option. It’s important too to understand which will match your needs, your budget and your appetite for risk.

One obvious advantage to buying an established business is the existing customer base or goodwill that is expected to stay with the business under new owners. It’s worth any franchise buyer doing some research on customer loyalty and local support for the brand.

Taking over from a popular owner with an established team of employees can set up a new franchisee really well – but it can also be a challenge if there is resistance to change locally and within the business.

This is why buying a Ferguson Plarre Company Owned store can offer great benefits. The ground work of establishing the store, growing a customer’s base etc. has been started for you, but unlike with a previously franchised site there is less likely to be any lingering negative side effects.

FergusonPlarre_Sponsored8.jpgAn established business has the advantage of a trading history that gives the franchise buyer and accountant an insight into the costs of running the business and typically with a company owned store there is great opportunities to grow the business in a way a company employed manager may not have been able to.

Investing in an existing site is often seen as a less risky option than choosing a brand new site to set up in business – conversely the opportunity to extract profit may be constrained.  Similarly if you have little or no retail experience an existing Company Owned store  may be more suited to your needs as will be  surrounded by a team of well trained seasoned staff, established systems and a guaranteed ‘turn key’ start to their first day of trade.

There is plenty of profit opportunity if you opt to buy a new or ‘greenfield’ site. As the first franchisee you will be developing the customers, getting the brand known in the neighbourhood, creating a profile for yourself in the community, establishing a great team and gaining a reputation for fantastic customer service.

If the finances are right, that will be a huge benefit.

First-time franchisees might love the idea of striking out on their own; alternatively, the capacity to step-in to a business with an existing income might be preferable.

It’s time to get thinking. Established retail franchises like Ferguson Plarre can offer both Greenfield and existing Company Owned outlets, with the advantage of a well-known brand to back up the business, whatever the choice made.

Choosing to invest with an iconic brand gives you a great start in your franchise and with a committed support team Ferguson Plarre will be with you every step of the way.