Investing in a franchise business is a great option for entrepreneurs since there’s no need to start a business from scratch here. According to research conducted in 2019, the success rate of a two-year franchise business is around 8% higher than that of an independent business.
Franchises work on a business that runs on every model possible- from marketing to branding. If you are keen on starting a business like this of your own, here are a few things you must know to ensure that your venture in this field is a successful one.
1. Examine yourself
First and foremost, ask yourself if you’re the kind of person who would be able to run a franchise properly or not.
Many military veterans are very successful when it comes to starting a franchise since it requires a lot of patience and hard work, something that is taught extensively in the military. If you are someone who can work for long hours consistently, a franchise is a good option.
But if you value creativity more, and you like to cook with recipes or live without rules, then maybe this isn’t your ideal niche. While running a franchise, you need to understand that you’re going to be an implementer, not a creator.
2. Study the field properly
There’s a lot of information made public by franchise companies. Learn the ABCs of running such a business and read guidebooks that let you know about the rules and regulations in your locality or country.
Many franchises are forced to spend a huge amount of money on advertising and yet, have no control over how that money is spent. If you need legal advice, head over to Gold Coast Lawyers, your one-stop website at finding a solicitor, barrister, or legal practitioner online.
3. See your strengths
What do you feel about cold-calling? Will you be able to handle business-to-business sales? If your strengths lie in a particular area, such as food management or culinary arts, try to start a franchise there, such as Applebee’s. Don’t step into completely unknown waters because that might land you in trouble. Assess your strengths and see which kind of job position suits you best.
Many businesspeople wish to run a franchise but hate marketing and sales, which inevitably leads to losses. There is a huge misconception where people think franchise means just running a business in a box.
4. Count the expenses
Try to look beyond the money that you’ll have to invest in starting the franchise, usually listed as a franchise fee. Getting a franchise up and about requires hefty marketing costs and the need to survive if your business runs on a loss.
Even if you franchise on a popular business like 7-eleven, your customers need to know your location and stores that shall be open.
Calculate your expenses for at least 5-6 months beforehand so that you have a clearer idea of how much you’re investing. Most franchises take a year, or even more, to turn into profits.
5. Beware of franchise consultants
Most franchise consultants are nothing but salespeople. They want you to sign up with them as soon as possible since they themselves get a commission of almost half of the franchise fee that you pay.
Instead of listening to them, talk to professional law consultants from reputed brands like Gold Coast Lawyers. They will guide you from A to Z and make sure you follow the right path towards your success in a franchise business.
6. Don’t believe the lies
Many will tell you that franchises tend to fail at a rate of 5% or so. This is definitely untrue. They fail at a rate similar to those in other businesses, which is roughly two-thirds of all self-launched businesses.
If someone tells you to opt for a franchise because “90% of them function smoothly as compared to only 25% of self-owned businesses”, do not pay any heed to their words.
Over to you…
While running a franchise isn’t an easy task, if you know how to work your way through, you’ll earn millions. Talk to the right people, make wise decisions, and read up as much as you can. For some extra insight, you can even consult other franchise owners to learn about their experiences.
While your every move might not be a successful one, be prepared to fall and try again. With patience and determination, your franchise will be a huge hit in no time.