If you are seriously considering going into business for yourself but have limited experience, your best option may be a franchise business. Franchises are everywhere and they are a wonderful way to duplicate a great business idea without carrying all the cost.
A typical example of a successful franchise is of course the world famous MacDonald’s chain, although entry level and ongoing costs are enough to scare a lot of people off. From the point of view of the franchisee, a good franchise opportunity can give them a framework upon which to build a successful business. If the business is well marketed there will already be brand awareness that you can capitalize on.
Best of all good franchises will provide tried and proven recipes for success. Product development requirements, and business and marketing strategies are mostly already pre-planned so you should not have to worry about these. It is already done for you. You just have to run an efficient and effective business, providing a quality product and quality service.
It’s that easy; but only if you buy into the right franchise opportunity. Unfortunately, there are many franchise operations that are someone’s get rich quick dream and they haven’t built a viable and known business first.
The first rule of selecting a franchise business opportunity is to choose one with a track record of success. You want to see steadily increasing profitability due to good management, growing demand for the product or service and excellent service. However, that is not enough on its own. It takes skill, organization and excellent communication skills to transform a successful and well run business into a franchise.
As with most things in life an excellent sense of timing is very helpful. For example, with growing health consciousness, it is probably not a good time to buy into a fatty fast food franchise. However, with people so busy with work and other commitments that they can’t find the time to clean the dog, wash the car or clean the house, personal service franchises are booming.
Just wanting to have your own business is not a good enough reason to buy a franchise or start a business. You need to give it a bit of thought; after all, for the first five years your new business is going to require a lot of love and attention.
Start by asking yourself what you are good at. What do you love to do? If you are not a people person or have very few people skills it is probably best to avoid a customer facing retail franchise. Try to match your personality and abilities with the franchise opportunities available and see if you are compatible. Once you have narrowed down your possibilities to a few of the best ones contact the franchisers and ask for an information package. Read it very carefully.
You need to know what level of advertising and marketing they will commit to, what training they will give you, what help is available, the terms and conditions of the franchise and the business model. Don’t take any of this information at face value. Make sure have any agreements checked by a competent expert and don’t sign the contracts unless ratified by your legal advisors.
Good franchise opportunities will have a good reputation and you should be able to discover it by contacting your national franchise business association and possibly by doing an online search. If you are relying on web endorsements do be careful as these can be manipulated. A common internet marketing strategy is to post comments in forums, write blogs and create an ‘expert’ persona to gain credibility.
The problem is, you don’t know what’s genuine and what isn’t. Always consider looking at your regional franchise association website if you have one, as these can be a great source of advice. Legitimate associations will only present viable franchises for your consideration. They will also usually provide a lot of information that will help you choose a franchise and run it successfully.
A good rule of thumb when it comes to choosing a franchise business opportunity is to choose one that has a history and a good reputation offline. It is also advisable to seek expert guidance before making a committed decision. The internet can facilitate your initial research but it is up to you to do your due diligence and become truly informed about any franchise business you are considering. If you start out right, franchising can make business success easy.