10 Tips On How To Start A Franchise
You may be looking to run your own business in the near future, and if this is the case then franchising is a very real option for you. Starting a franchise does not have the same level of risk attached to it as starting a business from scratch providing that you choose the correct business to invest in. However, there is much to consider before you start a franchise and knowing where to start may prove rather problematic.
Where To Start
Finding the ideal franchise for you is undoubtedly the key to business success when you want to invest. Starting a franchise should not be about luck, but instead it should be about making a solid business decision based on what is best for your entrepreneurial success. Finding the right place to start can be incredibly difficult so here are some tips to help you assess the correct factors, and ultimately make the right decision to start a franchise that suits you:
1. Assess Your Skills – You need to know exactly what is required of you personally when starting a franchise because it is incredibly difficult to keep a business going when you do not have the capacity or personal skills that equip you to do so. You should be completely suited to the opportunity for the best chance of success.
2. Assess Your Financials – Do you have enough capital to put into the business when you start a franchise? The general rule is that you need at least a third of the initial start up capital. You may also need financing assistance so be sure that you can get it, whether through the franchise or from elsewhere.
3. Check Out The Franchise Reputation – Is the reputation of the franchise you intend to invest in stellar? Is it respected in the marketplace? If the answer to both of these questions is yes, then it will be much easier to get your business off the ground when you start a franchise. This will give you the edge you need when your business initially opens. You will also need to assess how established the franchise is and how much competition you will have from within the company itself via exclusive territory rights.
4. Speak To Existing Franchisees – Existing franchisees will be able to give you a lot more information than the company itself when you are considering starting a franchise. They will be able to point out the positives, negatives and pitfalls to help you avoid any issues further down the line.
5. Assess The Market / Industry – Is the market saturated? How does the company itself fit into the marketplace? You will need to assess this to determine your position within the market and your chances of succeeding when you start a franchise.
6. Develop Your Own Business Plan –You should have a business plan right from the start and you will need to follow it. People with business plans are more likely to succeed when starting a franchise than those that do not. If it is on paper then you have a framework to stick to.
7. Look Into The Training / Support On Offer – All franchises should offer training and support but some offer more than others, so establish what is on offer and assess it in relation to how much you believe you will need.
8. Make A Firm Decision – Do not hesitate to start a franchise. If you do then there are obviously some doubts as to whether you are making the right decision. You should ultimately be able to invest with peace of mind so never make any less than a firm decision.
9. Use A Franchise Consultant – A franchise consultant will be able to fully assess your skills and position in regards to what a franchisor wants, so you know whether or not you will be able to fit well within the company. This assessment is essential to assure your own success.
10. Examine The Fees – You should know exactly what you will be expected to put into the business when you start a franchise. This includes initial fees, ongoing fees, royalties, hidden costs, and any obligations like machinery and premises. It is essential to know where you stand financially to avoid any surprises.