Is franchising right for you? A guide
Have you ever contemplated owning your own business, but the fear of failure was overwhelming?
The fear is not misplaced. Various business surveys revelling that franchise businesses tend to have a higher chance of survival than independent businesses. Business in the UK has a 6.4% and 8.4% higher chance of survival within their first two years of existence! Franchising offers the right opportunity for potential entrepreneurs to go into business – for yourself, but not by yourself.
We know that thousands of people dream of getting away from the 9-5 and owning their own business and living the bitcoin lifestyle. However, they don’t often have the know-how, managerial skills, confidence, or experience to start their own company – and that is where franchising can be the right opportunity to achieve your dreams.
Advantages of franchising
Franchising is a way for you to go into business without suffering years of trial and error. We are not saying there are no risks but, the mistakes have been made and rectified, the systems tested and augmented and the business processes developed through experience.
Additionally, you will benefit from all the support that the franchisor offers. This includes but is not limited to training, marketing, finance and sales, plus ongoing operational support by way of regular business reviews, ‘best practice’ communication and comprehensive marketing collateral and programmes.
Furthermore, the franchisor will be keen to upgrade its systems and introduce new products and services to the franchise. All of these can benefit franchisees with the next opportunities to develop their own business.
Is franchising right for you?
The advantages of going into franchising are clear but before you do take the leap of faith it is important to reflect on what exactly you hope to accomplish with such a major decision.
You need to ask yourself the following:
What are you trying to achieve in your personal and business life? How will owning a franchise help you to reach these goals?
Determine what you’re interested in. Do you want to be ‘on the road’ or working outside? Are you more skilled in building relationships and if so, would business to business be preferred? Or do you think a retail environment is for you? Where are your strengths? What are you interested in? Remember first and foremost that franchising is not a job, so do something that you will enjoy for years to come!
Once you know the type of business you want to work in then you need to identify the key industries that match. Could that be education? How about printing? Maybe branded merchandise? Garment alterations and repairs could be another option.
Further analysis
After you are clear on what you are looking for it will lead you to several franchisors in each given field. You will need to analyse the strength and viability of each organisation.
Visit each and examine their track record, their longevity, the quality of their management team and their visions for the future – and ask to speak to other franchisees in the franchise.
As you get further along your franchise journey, and you narrow down the franchisors that appeal to you then you will get to a point when you need to do a business plan. You will also need to read and digest the franchise agreements.
At this stage get professional advice. Find yourself a good accountant to help you prepare a business plan. Seek help from a bfa accredited lawyer to read through and advise on the franchise agreement.
Every business takes time to start producing profits. You do not want to spend all your time worried about repaying a series of loans when you should be spending your time finding and dealing with customers.
