There is no doubting the fact that becoming a franchise for a well-established brand is a good way to get into business.
Setting up your own business can be an arduous task - you need to identify your niche, research the market opportunity, start operating, and keep learning. Over time you learn from mistakes, gather experience, understand your market, and are then able to master the challenge. For many entrepreneurs, getting established can be quite a stressfully long period with many uncertainties – extending to perhaps even up to 3-5 years or even 10, in some cases. This is where franchising can come to your aid and speed up the path to a profitable and growing business.
A strong franchise will have been operating long before you enter, meaning that others have made the mistakes that you can now learn from. The formula is simple: others have beaten the path, worked out how to operate, and built a successful model. Now all you need to do is replicate it! There are many franchise options available, so what should you look out for when choosing one? Here is some simple advice:
Passion for Business
Even with an established concept, the franchise will be your business. You will be involved on a daily basis for the coming years. So make sure you choose an industry which excites you, which you can identify with, and where you can identify a personal mission. It is but natural that you won’t like doing things that you don’t enjoy.
Support and Training
Even with all the business experience you have, a jump into entrepreneurship can be demanding. When choosing a franchise, be sure to ask what kind of support and training the franchisor offers. While operations manuals and standard processes are an important part of franchising, the people element cannot often be overlooked. You need experts in the field giving you intensive startup training to be ready for launch, as well as frequent hands-on guidance and support. The less people and time the franchisor gives you, the more you are on your own!
Processes and Systems
Check out how well-defined the operation is. Are you able to get instructions on how to operate across all elements of the business i.e. marketing to sales, operations to finance, human resources to administration, etc.? What about proprietary systems that support the operation? The better and more thoroughly defined the operation, the less you will have to find your own answers or solutions, and the more likely it becomes that you can replicate the success that other franchisees are enjoying.
Results and Returns
Take time to look into the financial model - make sure it works for you, based on your experience, and for the market you are going to operate in. Don’t rush into the business just because it excites you - ultimately you want to make money, so time invested here will pay dividends later. Also, be sure to investigate the parent company and its franchise network’s past history - results if available and track record as a business. The wider the network of franchisees, the longer will be the history of the company. And the more impressive the growth record, the more likely it will be that you have found a business model that works.
A Tip
In short, don’t jump in at the deep end! Make sure you find a franchisor who delivers a product or service you love and provides a well-defined system with guidance and support along the way. And since this may be a long-term relationship, make sure you get along well with the people you are about to enter into a contract with.
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