small business franchising

A:If you do not have business experience, franchising will be the best option. Donot forget 85% of new startups fail, while only 10-15% of franchises fail. In franchise, you may not earn exceptionally high, but you may be assured of normal returns. Once you have experience, thing of buying or staring new business from scratch. good luck!

A:I'm not sure how to determine the value if there are intangible assets, or how much of projected future sales you can count towards a valuation. But how about if you get the current value, and project a reasonable amount of growth forward for 2 years. Then agree to purchase a share based on either that projected valuation, or the actual valuation in 2 years, whichever is less? That gives you a chance to buy in at a price that has a ceiling on it.

A:There are so many small businesses out there that he can look into. You'll get a lot of different ideas here on yahoo to look into. When I was looking for a small business, someone suggested this blog from yahoo on small businesses that you can run out of your home. Your Uncle would have the same income opportunity as a traditional business, but without all the over head expenses. Most home based businesses are businesses within a business, just like if you were to buy into McDonalds, but they cost a fraction of the amount as going into business with McDonald's. Here's a blog that has over half a dozen different industries to take a look at. I'm sure it will give you a lot of ideas to give to your Uncle as it gave me. Good Luck to you!

A:I think it sounds high, but I'm not an expert by any means. You'll need a whole lot more information before you can set a price. Here's what I thought of in just a few minutes. -how much of that $50,000 was actual profit? - what were the sales and profit figures for each of the last 5 years, - how many hours did she work over the last 5 years, - how much is the inventory worth, - can she transfer the franchise to you with the parent company's approval or do you have to apply for your own franchise - will that happen automatically or is there a risk that it won't happen; - any other property with the deal? You say there is only inventory and customer goodwill, but then you say you have to get lights, flooring, etc. - are there any accounts payable or receivable? What happens to them? Who pays any bills due? Who gets any money owed the business? - how long will you have to work to reasonably expect to earn what you paid for the business? - what is the potential for growth? - does the franchise limit you to a certain territory? - are there any employees of the business? Have you managed employees before? - does the business have any other liabilities, like pensions promised to employees, judgements against it, lawsuits pending, etc.

A:either way is fine. as long as you have the determination and perseverance, you should achieve whatever you want. since you'll be dealing with customers, you might want to get a head start on small business customer relationship management. remember, your customers are the source of life of your business so you need to take care of them. here's a good source: http://www.crm-software-guide.com/small-business-customer-relationship-management.htm