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Business & Tech

Starting a Small Business in Lake Saint Louis: Opening a Franchise

Lake Saint Louis Patch explores franchise ownership.

Have you ever thought of ? Lake Saint Louis is home to approximately 453 businesses, each of which has, on average, 11 employees, according to a report published by the Economic Development Center of St. Charles County.  

The City of Lake Saint Louis shares an Economic Development program with other St Charles County cities, which has various resources available to help current and potential business owners navigate the waters of building a business in Lake Saint Louis.

It Starts With an Idea

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The first step in building your own business is to decide exactly what you want to do—to choose or create your own business idea. Although this seems pretty obvious, many people know that they want to be entrepreneurs, but they don’t know exactly how they want to go about doing that.

The good news is that you’ve got plenty of options. This week, we’re discussing franchise opportunities, and next week, we’ll discuss original concepts you design yourself.

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Considering Buying a Franchise?

As a franchisor, your business plan will already be determined, for the most part, and companies that offer franchising opportunities have generally been very successful, so they’ve got proven business formulas.

Across the country, an estimated 550,000 franchisors bring in more than $800 billion in annual sales, according to a report from FranchiseHelp.com.

“In addition, franchising has a higher success rate than start-ups,” states Franchise Help’s report. “The Department of Commerce reported that, since 1971, less than 5% of franchised businesses have failed or been discontinued each year.”

One of the biggest benefits of buying a franchise or another existing business is name recognition, which can provide an instant customer base. For example, companies such as , Burger King, and even Midas Mufflers have franchise opportunities available.

Things to Consider Before Investing

Though there are plenty of reasons to consider buying a franchise, there are also potential detriments to consider before jumping into a franchising contract.

Ray Barton, who shares chairman and CEO responsibilities for with his sister Rhoda Olsen, told Business News Daily that there are several important factors to consider before opening a franchise.

“One big decision you have to make is whether the investment required is comfortable for you,” he told a Business News Daily reporter. “If you have to stretch too much, it could easily lead to bad decision-making down the road. This isn’t one of those lessons you want to learn the hard way. Avoid creating stress by getting in too deep financially.”

A Great Clips franchise, for example, can cost between $108,000 and $203,000, Barton said.

Olsen said that many franchisees don’t understand what they’re getting themselves into with their franchisors.

“For instance, some franchisees may have a misconception that the franchisor is going to do a lot more for them than they actually do,” she told Business News Daily. “But in other cases, the misconception may be that they will have a lot more autonomy than they really have in a franchise structure. “

Franchise Help also points out that the ideal franchisee “is somewhat risk-adverse and willing to pay the mother company certain royalties and follow some restrictions to diminish the overall chance of failure.”

Which franchise is right for you?

Not sure where to start when it comes to choosing a franchise? There are hundreds of franchise opportunities that might work for you. Consider some of the following ideas.

  • Cousins Subs, which has been in business since 1972, offers low investment and startup costs and a cash business with low recievables and little inventory. The company offers single and multi-unit development strategies (in case you want to open other locations in the area) and strong support systems for site selection, construction, training, marketing and opportunities, according to the Cousins  Subs website. All you need to do to get started is to take a quick pre-qualification survey
  • If you want something that will make your heart smile as well as being profitable, the senior-care market might be for you. Consider franchising with companies such as Visiting Angels, which focuses on in-home healthcare for senior citizens, or Stay at Home, a company that does in-home non-medical care so that senior citizens can stay in their own homes instead of going to nursing facilities.
  • If you’re into luxury, you might want to franchise with companies such as CruiseOne, which is one of the nation’s largest travel retailers, or Apricot Lane Boutique, which bills itself as “a truly unique fashion retails store.”
  • If you’re more of a hands-on kind of person, you might want to try franchising with companies like FixRim, which does mobile wheel repair, or Fleet Services International, which would give you your own low-overhead, exclusive fleet services dealership and is associated with stock car racer Richard Petty.
  • If you want to bring a whole new element to town, consider franchising with companies such as Gourmet Streets, which is a gourmet food truck franchise, or Fresh! Healthy Vending, another food truck franchise that focuses on healthy foods—an often underserved market.

These are just a few of the hundreds of franchise opportunities that exist. Check out Franchise.com’s Franchise and Business Opportunity Directory for more ideas.

Have you always dreamed of starting your own business? Subscribe to our daily newsletter so you won’t miss a single part of this ongoing series! Next week, we'll discuss ideas for coming up with an original business concept.

Do you own your own business in Lake Saint Louis? We want to share your story with the community! Contact Patch reporter Angela Atkinson at angela.atkinson@patch.com to arrange for an interview.

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