Franchises offer budding business people the best of both worlds. They have their own independent business, but at the same time, they are buying a tried and tested system that has worked elsewhere. This makes it a less risky proposition than starting an entirely new business from scratch.
However, while a business that has worked in other places is more likely to work where the franchisee wishes to open up, it does not guarantee success. One big mistake that can cause new franchisees to fail is relying on the strength of the brand and the system alone. These will not do all the work. The franchise owner must contribute too.
This guide offers a few top tips for franchise business success. May following them help you on the way to your fortune!
1. Love what you do or sell: It sounds a bit cliche, but broadly speaking there are two types of franchise owners. There are those who are just generally interested in business, and who spend their time thinking about things like supply chains, inventory management, and cutting costs rather than actually giving a hoot about what business they are in. Then there are people who are really passionate about what they are offering. You can probably guess which kind attracts more customers and has a better franchising experience on the whole.
If you’re really into exotic cooking, then Asian restaurant franchise opportunities are more likely to fire you up than, say, dog grooming or selling health supplements. Following your passion will help keep you motivated when things get challenging too.
2. Do market research first: Being a franchisee can be a great idea for an aspiring entrepreneur as it means they don’t need their own brilliant idea to get started. However, it doesn’t take away all of the initial work. You will still need to do research to find out whether it is a viable business idea. The key question you should be trying to answer is whether enough people in your desired location want this franchise.
Even if it belongs to a well-recognized brand, there might be too much competition in the neighbourhood, or too few people who fit the target demographic of the business.
Remember that you will also need staff. Does your community have a pool of qualified, talented people that will want to work for you and will be easy to train?
3. Save up: Something else that a franchise does not take away from an entrepreneur is the need for capital. To get an idea of how much you will need, think about how long it will take you to be convinced that the business is working out or not.
You will want enough money to cover the initial costs of setting up the business and to keep it going for long enough to know whether it is worth sticking with.
If you are thinking about buying a franchise, it is important not to believe that the business you are buying will automatically bring customers through the door. The work starts before your business is even set up, so following tips like these will give you the best chance of success.
