So you want to be your own boss? Well you should know that 90-95% of most independent small businesses fail in the first 5 years. One of the key reasons for business failure is lack of capitalization. One method of beating this failure rate is to buy into a proven business system or plan. How do you do that? Well, franchising just might be the answer for you. The world of franchising is one that can offer many rewards if chosen carefully, but potential franchisees must do their research. The typical income for a new owner ranges from 100K to 160K after expenses. So what are the benefits and start-up issues associated with franchising?

As was stated, almost 95% of all new businesses fail in the first 5 years. Conversely, 97% of all franchises are still in business after 5 years. Why is that? The reason for this is that franchising offers a solid foundation for the potential business owner by allowing entrepreneurs to gain a "leg-up" against other start up businesses by buying into a proven business system. Although a great way to "lower the learning curve" and chances of failure, buying into a franchise comes at a cost. As an example of the start-up fees and costs in franchising, potential franchisees can expect a total investment.

Potential franchisees must decide what franchise is right for them, plus the costs associated with the first few years of operation. They must review different business offerings (through websites such as bizbuysell.com) and then contact your local business broker to work through the financial and legal aspects. Remember that most business brokers charge a 10% fee for helping the seller sell their business and the costs are, in many cases, passed on to the buyer in the form of higher overall business valuations.

With this, it should be clear that start-up costs might be a barrier to entry for many potential franchisees. Many franchises will require you to have 400K (USD) plus in net worth and 100K+ (USD) in liquidity. As an example, a franchisee can expect to pay anywhere from 240K to 375K depending upon the size of the business.

If costs associated with starting a franchise seem to be a barrier to entry or out of your budget, consider a popular lower cost "online franchise."

Stephen Eastham is a is an independent direct sales entrepreneur with LifePath Unlimited. A former owner and business broker of Sunbelt Business Brokers of San Jose, CA, Steve promotes the benefits, freedom and lifestyle of direct sales, network and attraction marketing. Steve is also a retired military officer and naval aviator.

For a Free 32 page report detailing his proven, easy-to-follow, 4-step method for earning significant income in direct sales, please visit his website at http://www.easthamglobal.com.

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