Franchising: The essentials
Written on the 25 March 2013
Franchising can provide a valuable head start in running your own business.
Not only do you buy into an established brand, you can enjoy the independence of small business ownership with the support of a larger business network. However, choosing the right franchise requires the same due diligence as any major investment. Heres a simple checklist to help you on your way.
Which industry is right for you?
As a potential franchisee, you have the unique advantage of choosing an industry that genuinely inspires you. Theres no point looking at industries purely for their growth potential they may look good on paper, but do they match your interests and experience? Instead, narrow down your search to a couple of industries that interest and inspire you.
What skill set is required?
Running a business requires a certain set of skills, from managing staff and customers to administering finances and understanding business strategies. Assess your skills do they meet the franchises business demands? And if not, do you have the time and means to upskill?
How much flexibility do you need?
Owning a franchise gives you greater flexibility with your working hours. On the other hand, being your own boss comes with a demanding workload that may infringe on evenings and weekends. Weigh up the pros and cons of managing your own hours to see if its going to work with your lifestyle. If youre not keen on working weekends or seven days a week, explore franchise systems like B2B models, which tend to operate during business hours, five days a week.
Do the numbers add up?
Look at the figures and determine whether youre going to make a reasonable return on your investment. As well as the purchase price, youll need the capital to fund ongoing costs, so investigate all of your funding options. A franchise is both a legal and commercial relationship get the right advice and make sure youre satisfied with the conditions before you commit.
Is there a support system in place?
You want to be sure you have the ongoing support of your franchising network. Get a good understanding of support systems by checking the franchises disclosure document, talking to the franchisor and checking in with other franchisees.
Are you committed?Ask yourself if youre 100 per cent committed to the business. Too often franchisees are captivated by the potential returns, but when it comes down to the daily demands of a business only genuine passion will help you make it a success.
Want to take the next step in owning a franchise with true growth potential? Contact Snap to discuss our unique franchising opportunities.