Many Americans dream of owning their own business and being in control of their destiny. The only issue is that very few folks will actually dive in and take the risk to become their own boss. The reason for this holdback: it’s the fear of failing.

The rate of failures on startup businesses varies from person to person. However, Scott Shane of Case Western Reserve University often has his data cited. He states that failure rates in one year are about 25 percent and 10-year failure is about 71 percent. What do these numbers mean? If four businesses begin in one year, one business is bound to fail in that first year. 71 percent of businesses currently open will be shut down in 10 years.

Understanding Entrepreneurship In Franchising

Since failure rates are high, it’s of no surprise that very few people will try their hand at it. Many people don’t know that a way to become a business owner is to start a franchise. Franchises have less of a chance of failing and are actually do well monetarily. Using the same 10-year study from above, nearly 62 percent of franchises are still in business, an extremely high figure.

Why Franchises Stay In Business

Why is it that franchises stay in businesses longer than a startup company? Franchises have a large quantity of advantages that novice entrepreneurs don’t have, which means the venture is less risky.

Five Advantages of Franchises

Advantage 1 – Training and Support

Franchise businesses will give new franchise owners plenty of training and support in the beginning. Franchisers get a fraction of the profits so it’s in the best interest to ensure that the spin-off franchises do well. Smaller franchises offer people consequential support.

Advantage 2 – Purchase Company Model, Not Just Name

The big reason franchises tend to last and thrive is that the business model is already working. It’s not just about the name or the brand; it’s the model itself that helps to make this franchise successful.

Advantage 3 – Bargaining Power

When you have a franchise, you have some bargaining power with your suppliers. Independent, new business owners don’t have this kind of power or luxury and must earn it, unlike a franchise.

Advantage 4 – Expert Support

When you get involved with a franchise, your business is not alone. If you ever have problems or questions then you seek out some advice. Whatever business franchise you go into, you’re bound to have hundreds of people you can turn to that would love to give you advice so that you succeed. Many larger franchises will also give individual training and support.

Advantage 5 – Well Capitalized

Most franchises are well capitalized, which makes them have a high survival rate. Most startup businesses don’t have this luxury. People who want to get involved with franchises usually have just enough requirements to buy into the business.

Five Disadvantages of Franchises

The disadvantages of franchises are pretty clear-cut. Make sure to understand them before you decide to that the franchise business is right for you.

Disadvantage 1- Loss/Lack Of Control

Independent franchises often have to follow the guidelines set forth by the franchise including what kinds of tables to use, wallpapers and more. If you don’t want to give up that control, this won’t be the business for you.

Disadvantage 2 – Less Long-Term Profits

Franchises are a big business but making it rich isn’t always there. You’ll earn a decent income but nothing like Microsoft or any other Fortune 500 company.

Disadvantage 3 – Hard To Sell

When you have a franchise, it’s harder to get out from underneath it especially if it seems the parent company is having problems.

Disadvantage 4 – Possibility Of Parent Company Going Out Of Business

It doesn’t matter if your business is doing good or not; if the parent company goes under, so will you. Make sure you choose a company that’s been doing well, both in good times and in bad.

Disadvantage 5 – Possibility Of Getting A Bad Name

When a franchise fails to do well, you could be indirectly affected by it. Your reputation will be tarnished just because of the name.

When you start your own business, you should find out about internet marketing strategies to use it. Here are five common mistakes that people make when promoting their websites.

The first internet marketing strategy mistake that people make is to trust their internet marketing consultant fully. Sure, in any business relationship, you are going to have to have trust. But you don’t want to trust them so much that you forget about what they said they were going to do and when they said they were going to do it. If, after signing the contract, your Internet marketing consultant puts his feet up and starts relaxing, it may be time to find a new Internet marketing strategy.

Another mistake people make is when they think that internet marketing SEO is going to solve all of their advertising problems. Sure, internet marketing is important, but forgetting about more traditional means of advertising for your business is going to keep some people from learning about your business. If you are selling spare computer parts, you may just want to stick to Internet marketing, but if you are selling household clothes, clothing or pizzas, you want to make sure to look into other forms of advertising as well.

The third internet marketing strategy mistake that people make is to not keep proper records. When starting an advertising campaign, you need to have a baseline – knowing how many customers you are already bringing in, how much profit you are making and so on. If you don’t know these numbers before you start the campaign, how will you know that your Internet marketing strategy is working?

One really mistake is to put your internet marketing strategy in place before your website is completed. Sure, good internet marketing strategies are going to get people to come to your site, but if they come to a site that is still under construction, they are not likely to bookmark it and they are not going to come back. Make sure that you have a high quality website and product before starting your marketing.

The fifth mistake is to not have an internet marketing strategy. Even if you are a company that has just started out, you need one. If you are not on the internet, you are definitely missing a huge percentage of customers. If you can’t describe what your internet marketing strategy is, you’re also going to get scammed (or at the very least it will do nothing for your business). You should be able to explain what is going on with your business and what your advertising goals are.

Internet marketing strategy can be complex, and people make a lot of mistakes. The key to a good campaign is understanding how to get the most for what you are paying.