Investing in and running a franchise business is a great way to make money for anybody who is interested in having their own business and a career as an entrepreneur.
Unlike starting your own business from scratch, buying a franchise has many benefits to enjoy, including the fact that you will be working with a business that is already established, has a customer base who are familiar with the brand and products, and clear guidelines to follow that have been proven to work time and time again.
If you want to make a living from running your own business, but don’t want all of the risks involved, a franchise could present you with the best alternative. But how do you choose the right option for you?
There are thousands of different franchise opportunities available and something for everyone, so do your research, look into business ideas that you may not have heard of already, and find the best option for your career and lifestyle.
Think About What You Love
First of all, consider the things that you already like and enjoy doing. There’s no point in investing money into a franchise business simply because it is a well-established brand that does well if you have no real interest in what they do.
Since franchising means that you need to follow brand guidelines to a tee and be heavily invested in the brand that you are franchising with, it’s important to find an option that you are seriously passionate about and will really enjoy running a business with. Otherwise, you are simply not going to have the dedication and drive required to run a successful franchise business.
Consider the Cost
Another major factor to consider when starting a franchise is how much is it all going to cost you.
There are various costs involved depending on the franchise that you are starting, and you might want to either self-fund this or fund it with the help of a business loan.
Generally speaking, the more well-known, successful, and well-established a business is, the more you are likely going to have to pay to get your franchise started. Along with the initial franchise fee that you will be required to pay to get your business set up, consider the ongoing fees and costs involved with running a franchise. Most franchisors will expect you to pay ongoing fees for things such as marketing costs, ordering products, staff uniforms, training, and more.
How You Want to Work
Consider how you would like to spend your working days when choosing which franchise to go with. If you prefer to be on your feet, in a busy environment and interacting with the public, you might want to go for a restaurant or other hospitality-based franchise. On the other hand, if you prefer a quieter life and don’t want a job where you will need to interact with crowds of people every day, an office-based franchise might be a better choice. There are also several franchise options available that allow you to work from home or another location of your choosing, which can also be cheaper to set up initially since you will not need to cover the cost of opening a physical location.
Demand
Once you have shortlisted some franchises that you might be interested in working with, consider the demand for them in your area. Think about how popular that particular franchise is in your area and if there are already several locations, will another one do well?
Typically, big brands like McDonald’s and Starbucks can do well even if there are several of them in the same location, while smaller brands might not fare as well. Speak to the franchisors as there are often location restrictions for starting some franchises, depending on which areas have the most demand for the brand, product or service.
Competition
Another factor to consider when deciding which franchise to open and where to open it is the competition in the area. Scope out the area where you want to open your franchise location and consider which businesses you are likely to be up against the most.
Are you going to have what it takes to deal with this competition? What kind of support can you expect to get from the franchisor when it comes to dealing with local competitors and ensuring that your franchise remains competitive and a top choice in the market?
Support
It’s also worth considering the amount and type of support that you can expect to receive from any given franchisor. Some franchisors are quite happy to provide you with basic details, leave you to it, and be on hand if you need any extra assistance, while others will provide you with more extensive guidance and expect to play a more active role when it comes to the running of your business.
Which you prefer will be completely up to you; you might feel more comfortable being given more control while others might prefer to have the franchisor around more often, particularly in the early stages.
Are You a Right Fit?
You should also consider yourself and your personality to determine whether or not you will be a good fit for running a franchise.
The difference between running a franchise and starting your own business is that there will be a lot of elements that you will have no control over. For example, if you start your own brand, you have complete freedom over elements like brand colours and logo, but when you run a franchise, you won’t have this kind of choice. You should carefully consider whether or not you are prepared to simply go along with what the franchisor wants and be happy not to put your own stamp on things. If you prefer to have full control over your business, starting your own might be more ideal.
Employment
Finally, consider buying a franchise from a business that you are already familiar with because you have worked there before is a wise idea. In fact, many franchise businesses will only offer an individual a franchise if they have worked there for a certain amount of time in order to ensure that they are only offering franchises to people who are familiar with and already dedicated to the business.
You might find it useful to work for a business for a certain amount of time, in order to ensure that you get to know the company culture, how things work, and whether or not you are a good fit for that particular brand.
If you are not in a position to find employment with a franchisor, you should also consider speaking to and spending some time with other franchisees to find out how things are run from their perspective and ask questions that you might not want to ask the franchisor themselves.
Buying a franchise is an ideal opportunity for anybody who wants to start a business with a well-established brand, plenty of support, and a ready customer base. Start your franchise journey today.
