If you are looking for an extremely safe way of setting up in business, buying a franchise can be a great route for you. So, what is holding you back then? I mean, you must already be keen to look at the option of buying a franchise; otherwise, you would not be reading this article!
The UK Only Has Around 1000 Franchised Businesses That You Can Buy
This is good news for you, as per capita, this figure is not a high one at all, you can then quite quickly and easily break this figure down to franchises that are within your investment range, then to which sectors interest you, and you will be on your way to three figures rather than four. All of a sudden, with a little more due diligence and maybe fire of several emails for further information, you might find that you maybe have that choice of circa one thousand, down to one or two dozen. Do not try and look at anything and everything!
Dig Deep And Get The Answers To All Your Questions!
This might come as a surprise, but franchisors do really want to sell you a franchise!
Granted, they should be looking for the right fit rather than an individual’s ability to pay the fees; however, they will often be quite transparent about the details of the franchise.
Do not expect it all at once though, there is an art to revealing commercially sensitive information so that detail does not end up in the wrong hands, but follow the process, ask the right questions, and any franchisor, or their consultant, will happily feed you as much information as required. This gives you the ability to make an informed choice; after all, that is their remit!
Feel The Fear And Do It Anyway!
It is quite normal to have all sorts of what you might think are irrational thoughts about buying a franchise, especially if it is your first time doing so.
This is all OK and very common when discussing a franchise for any business or individual, and you should not feel coerced into buying a franchise at all. However, there does come the point where all the necessary information has been shared, and all questions have been satisfactorily answered.
Indeed, if you decide that this is the right franchise for you, you will have to declare it as such and move into a more formal procedure. This is often the tipping point for many enquiring.
It is all well and good to enquire, getting more and more information, where there is zero commitment at this level, indeed from anyone, so it is all usually quite free-flowing!
You do have to decide at some point, though, often this is declaring that you have no further interest, which is often just as acceptable as it means that the franchisor or consultant can go back to the many others they are already handling.
Never Buy A Franchise That You Cannot Commit To 100%
Like any business, you will get out what you put in. This is a point that often does get overlooked, and there is often a train of thought that you have a ready-made business in a box with a franchise business.
It is fair to say that you are buying into a proven system; however, it is a system that you will be responsible for once you have undertaken the initial and ongoing training. You might even be given some business leads that can come from the franchisor, especially if they are well established. You need to find out if this comes naturally to you or whether these come at an additional cost, though you should never assume that you will just be given these, free or otherwise!
The rewards are there for proven models; you need to commit and follow the system.
How To Fund Your Franchise
It is often surprising how many people leave this as an afterthought rather than looking at this from a starting position; there is good news, though!
Right now, probably better than at any other time in franchising history, the franchisors, banks and funding partners have made it easier than ever to obtain access to funding. In fact, the Government even accepts itself that they should encourage more people into self-employment, and therefore even has a facility, of up to £25,000 per applicant, with very few qualifying criteria to access that funding pot in a matter of weeks. Now, suddenly, your franchising venture can effectively be paid on a pay-as-you-go basis, rather than upfront capital which might have even put a strain on the family finances.
This is a great way to limit your risk, it does not make it risk-free, but it is a measured risk.
There are other funding options, too many to mention in this short article!
There are always reasons why you should or should not do anything. It will be a personal choice, often surrounded by the help of the people around you that you trust; never underestimate this!
I will leave you with probably one of the most famous quotes that exist that I hope will have you thinking about your next steps. Let me know if this has spurred you into action or not!
“Whether you think you can, or you think you can’t – you’re right,”
Henry Ford
This article was written by Richard Pakey, who is a franchising expert and Regional Director for the award-winning Lime Licensing Group.
