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Monday, June 26, 2006

Computer Consulting: The Pros and Cons of Franchise Ownership

There are many benefits and negatives to owning franchise organzations in the computer consulting industry.


The benefits of franchise ownership in computer consulting is that you get all the pluses of being part of a larger company. You will get a support network of your peers built-in along with a series of resources. You will typically find yourself with access to people that can solve problems that might arise.


The biggest problem computer consulting entrepreneurs run into with franchise ownership is that they need a lot of capital investment to get them going. A percentage of your revenue and profit every month as a franchise owner will be paid to the franchiser, and you will have less freedom in your general business operation.


Starting a computer consulting business is not a huge overhead investment. The real investment in starting a computer consulting business is time. You will need three to six months or more to get enough contacts, prospects and project opportunities so that you will get 20 to 24 billable hours each week.


Even if you are diligent about all the groundwork, including local networking event attendance, sales calls and follow-up activities, you will not start seeing real cash flow until about three to six months after you start. If you want more than just you on staff, including tech staff members and sales people, you might find that starting a computer consulting business takes years.

In order to get a franchise, you need capital so you can pay business expenses. Just keep your overhead reasonably low to decrease stress.

Added By: Computer Consulting 101