Pros and Cons of the Coffee Franchise by davidkurniawan


									Pros and Cons of the Coffee Franchise

In the world of business and investing there are always pros and cons.
The same holds true when it comes to investing in a coffee franchise or
any other franchise for that matter. The problem is that far too few
people sit down and discuss the pros and cons before jumping in with both
feet. Before you make the final decision regarding your coffee franchise
future it is a wise plan to take a step back and analyze the benefits and
potential pitfalls of your business. The following information should
help with overall pros and cons and you can add to your list with details
that are specific personal preferences.

Pros of a Coffee Franchise

Excellent potential for low investment and high profits. Most coffee
franchise stores have fewer overhead expenses than many retail
establishments or even establishments that require a huge amount of money
for cooking and storing cold and/or frozen foods. You are also looking at
lower costs related to actually operating a coffee franchise with less
staff than many other business ventures require.

Having a good reputation for quality, service, and consistency. Building
a business is tough period. Building a business and a reputation for
quality and service at the same time are tougher still. A coffee
franchise eliminates the need to build a reputation if you choose wisely
and will bring in profits much more quickly as a result.

Building on a solid business plan. This is invaluable to most business
owners just starting out and struggling to find a foothold in the market
and in the world of business. A franchise offers the benefit of their
experience to new business owners and that is something that a franchise
fee just doesn't cover when it comes to value.

Cons of a Coffee Franchise

Having the potential for market saturation. The coffee market is a tough
business to break into. Even with an excellent name there is a great deal
of competition in this particular field because of the reasons mentioned
above. This means you are going to need to be aggressive in your
marketing and work hard to be better than the alternatives in the area.
This means you need to have a cleaner store, friendlier staff, better
music, and other incentives to get more people in the door than other
coffee franchise businesses in the area or seek areas that aren't already
saturated with coffee cafes, houses, and stores.

You must follow the directives of the parent company. For many who have
dreamed of owning their own business and being their own boss a coffee
franchise, or any other franchise, is definitely not the way to go. You
must follow the corporate directives in order to maintain your status as
a franchise store and build upon the capital of the good name of the

This is only a small sample of potential pros and cons for franchises.
You must decide which things you can live with and those you'd feel
better leaving behind. Your coffee franchise, if you choose to go that
route, will be a long-term commitment. Do not take that commitment

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