why dont small business produce goods?

Stan Conley: 1) Of course small businesses often produce goods. Of course if they are very successful they often go on to become a big company. Lots of small IT specialists make web sites for other businesses, not a tangible product but still something that has to be created.#2) Small businesses do not have the large overheads of big businesses. Small businesses are also able to react much quicker to a change in the market conditions than a large business. Large businesses are generally inflexible, and can not easily switch production from one item to another as their customers start to change what they want. 3) Franchises are businesses that someone has already set up, tried and tested before they offer it as a franchise. This means they can help you to market the business in the most effective way. Their name may already be well known, meaning the public may already like the "brand" such as MacDonalds or Photo Express, or Swinton Insurance. Those names will bring custom! ers to you as soon as you open a franchise in those names. Franchises often have suppliers all lined up to provide you with the best materials at an already agreed contract price, so you can calculate up front the margin on your sales per item4) A Franchise costs you up front a fairly substantial fee for the knowledge and contracts already associated with the company. There may also be an ongoing commission to pay to the franchisor for use of their name, national advertising, computer systems etc..5) There is a Franchise Magazine available monthly with all these details. Also just put franchises UK into Google and look at several web pages they will suggest. You will see that franchises range from £5k upwards. I saw one at £75K. I am sure others are even more expensive.6) Most new businesses fail in their first 2 years. But a lot of that is down to you. Do the right amount of research. Choose a business you will enjoy running. Work extremely hard for 12 hours or more a da! y for the first few years and you could be heading for your fi! rst million! Get any of that wrong and you will join the thousands of other new start-up failures that happen every year....Show more