How to choose a franchise
Franchise has many advantages over other types of business. But for the launch process to be really successful, you should pay attention to some important points.
Start-up entrepreneurs who want to gain independence in work with minimal hassle and risk often choose a franchise. The proven business model, which is accompanied by the support of experienced entrepreneurs, has many advantages over startups.
One of the hardest stages is choosing a franchise. Even if you have decided on the area in which you would like to work, you must also select a specific company. You will have to review a lot of projects, a lot of sites and chat with many people before you decide who you would like to work with.
Business News Daily talked to franchise “veterans” and business experts who gave a few tips on how to better choose a franchise.
What you should ask yourself
If you have no idea where to start, but want to do business, ask yourself a few questions.
What do I want to achieve?
Everyone who wants to become an entrepreneur has his own motives for this. Depending on your expectations, different franchises may offer different results, notes Dan Martin, executive director of IFX consulting company.
“What is your goal: to earn, spend more time on your family or your career? By answering this question, you can decide which franchise can best help you achieve what you want,” notes Mr. Martin.
What role do I want to play in business?
There are two types of entrepreneurs: those who organize the work process and hire people to work, and those who are directly involved in the work of the company. Great Clips Hairdressing Network CEO Rod Olsen advises finding the franchise that best fits the role you choose.
“Some franchisors offer more practical opportunities, others – management ones. Franchisees should first of all decide who they see themselves in this job and what is most comfortable for them,” says Rod Olsen.
What is my budget?
Franchise costs vary considerably, depending on which industry you choose and the specific business model. While you can spend $ 1000 on one franchise, costs on another can exceed $ 1 million. Founder and CEO of The Entrepreneur’s Source franchise company Terry Powell says that the franchisee should immediately assess how much he needs to invest in a business, for what period it pays off and what he wants to achieve in the future.
“To launch, for example, a franchise of a cafe, will be much more expensive than a business that will allow you to work at home, at least due to the fact that you have to spend much more money on equipment for the establishment. The franchisee must decide on short-term and long-term goals, “notes Terry Powell.
We will write some news only for mailing. You will not meet them on the site UBR.ua, and can only receive a letter if you subscribe to us.
After you decide how much you are willing to invest in a business, you need to make sure that the costs do not amount to wild discomfort for you. Business experts recommend starting a financial planning franchise at least six months before its launch. If you are not prepared in advance for starting a business, you may find yourself in an unpleasant situation. Be prepared for stressful situations during the launch of the enterprise, otherwise you may find yourself in a difficult and unpleasant situation.
Do I have basic business skills?
Often experience in the area to which the franchise belongs, has a very positive impact on the business, but more importantly, when an aspiring entrepreneur is not afraid to take risks and he has impulses for something new.
The President and CEO of the Floor Coverings International franchise, Tom Wood, draws attention to the fact that it is very important for the owners of the parent company that the franchisees understand all the responsibilities and are ready for serious work. You need to understand the art of marketing, learn to be fully focused on customer service.
Terry Powell notes that potential franchisees should not only look for a business in which they have work experience, it is important to find a business that is to their liking.
In any case, you must be determined to succeed, no matter how well you are familiar with the scope of activities.
What to look for
Once you have narrowed the range of business models that interest you, it’s time to choose a particular franchise.