Your Own Business Bernie essay example
One day when I was eating at Mc Donald's here in Mount Gambier I thought to myself it would be a lucrative opportunity to be part of a franchise like Mc Donald's. So I chose to focus on a career path of owning my own business one-day, whether I manage one or buy a franchise. Before I started writing I had to conduct an interview and gather a bit of background information. The whole idea of this study was to use some aspect of language whether it is the effects of language or language through oral communication. I chose to do the oral communication by conducting an interview with Bernie Knight. Mr Knight is the local franchise owner of the Mc Donald's which operates here in Mount Gambier.
In writing about this area I aim mainly to find out more about franchises and managing a business and what it takes. Also whether I would be suitable for getting into this type of career option when I get older. In conducting the interview with Bernie Knight I found out a lot of important pieces of information on franchising and a bit about how a Mc Donald's franchise works. Franchises are a good way for people to buy a business. Before buying one Bernie explained that a franchise agreement has to be signed. This gives you the person buying into the franchise the right to begin a business under one that's already exists.
In other words you are using their business name to sell their products. In the agreement, the person buying the business must use the same name, trademark and sell in the same way. Also by buying a franchise you have to give a certain percentage of the profits to the people you bought it off. Buying a franchise has its advantages and disadvantages. There are four main advantages with buying a franchise Bernie Knight said. One is you get to operate your own business.
This is good because this is one of the reasons why I would like to own my own business. Secondly you are backed up with the security of working with a large company. So when you are first getting into a franchise and you have trouble, the company you bought it off will help you out. Thirdly you are supplied with ongoing training from the person you buy it off and they give you plenty of advice along the way to help you succeed. Another very handy advantage is if you don't have enough money it is easier to borrow money for a franchise rather than an independent business. Like everything not only does a franchise have its advantages but disadvantages too.
Some disadvantages Bernie pointed out to me were that not every agreement is the same and some give you more control than others do. Another disadvantage, which occurs in most franchises, is you have to shut and open at certain times. This I don't especially like if it is an early start because I'm not really a morning person. Also you can only sell what you are told to sell. For example Bernie Knight can not just go and sell things like hot dogs at Mc Donald's because it is not on the original menu. Also before using the name of a business an up front fee has to be paid.
This can be a very big figure depending on the type of business you have bought. Mc Donald's for example has a bigger up front fee than a smaller franchise like Jims Mowing. Financing is a big part of owning your own franchise. To buy a franchise you need personal capital Bernie said. This is money, which you save up and put into the business. Bernie said if you don't have enough money to start, a good way to get it is borrow from friends and family.
For example, if a family member contributes twenty five per cent this means they are entitled to twenty five per cent of the profits. If family members don't have this money to spare, another option is borrowing from the bank. It is also easier to borrow money from the bank for a franchise rather than an independent business. This is because there is more guarantee of a franchise succeeding than someone's own idea. Franchises are a lot easier to run than your own business Bernie said. With his situation with Mc Donald's here in Mount Gambier it was already set up, it had a good customer range and was fairly established.
There were a few minor repairs, which had to be done, but nothing really too drastic. After finding all this out I think buying a Mc Donald's franchise may be a little bit out of my price range. Later in life if I start saving now it may be a possibility. From interviewing Bernie I now have some idea of the costs involved and how it all works. While most Mc Donald's restaurants are successful, the start of any new business is a risk and success is not guaranteed. This was one of Bernie Knight's comments, which really stood out to me.
He also mentioned how you should seriously have a good look into a business before committing yourself. I think I have achieved finding out what I wanted to know about franchising and managing a business. Originally when I said I wanted to own a franchise or manage my own business I didn't realise what the risks were and all the things that were involved. Before I interviewed Bernie I was thinking about getting into a Mc Donald's franchise one day. Now after interviewing Bernie I am more aware of the heavy costs involved and what some of the expectations are. I think to enhance my process I could have interviewed a few more people and gauged other people's perspectives about franchising.
Interviewing Bernie was a great help though and gave lots of useful information, which was used to put this piece of work together. In writing this piece I have found out a lot more than what I knew before I started. Like the costs involved. This pretty much put me off the idea of buying a franchise like Mc Donald's. Also I learnt a lot about the agreement and how it all works. Bernie also explained to me that it is always a good idea to check everything out before rushing in.
So if I do get into a franchise I might wait till later in life. In conducting the interview I think I'm a fairly good communicator when I'm one on one with a person. When talking to a large group I feel a little uncomfortable sometimes but when I was interviewing Bernie I found it to be a breeze, this was mainly because hes an easy going type of guy. Also he gave me well detailed answers and pointed out many keys things I should know before getting myself into a business like this. Word Count- 1,306 words.