Why a Business Franchise is a Good Investment

Posted on Mar 5 2018 - 7:37pm by Business Day TV

The benefits of a business franchise mostly involve not having to build a client base and establishing a brand, as these already exist once you acquire the business.

In Australia, you need to consider speaking with a franchise broker or consultant on how you should plan your next business venture. While a business franchise is likely profitable, it can also be risky without the right strategy.

Fitness Centres

A gym franchise has become more popular in the country. IBISWorld data showed that fitness centres and workout gyms have remained surprisingly consistent in delivering positive results. There are more than 4,200 fitness facilities in operation, which are worth a combined $2 billion.

The IBISWorld statistics noted that most of these businesses are franchised enterprises. In the last five years, these businesses were able to attract new clients due to their “affordability and accessibility”. If you prefer building a company from scratch, a new tax incentive may help your cause.

Angel Investments

Those who plan to establish start-up companies may find it easier to secure angel investments due to a new tax incentive scheme that encourages this type of investment. According to Treasury data, angel investors provided around $300 million of capital for 340 new companies between the fiscal year 2016 and 2017.

The money came from 3,400 investors and through the incentive, they will be eligible for capital gains tax if the value of their investments increases in the next 10 years. The federal government introduced the National Innovation and Science Agenda initiative to entice more investments in “early stage” companies.

Whether you plan to embark on a franchise or a start-up opportunity, you need to consider all options and be properly informed about the risks and benefits. The money and time you spend on investment consultants will be worthwhile, especially if you have limited knowledge of business strategies.

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