These day's many individuals are increasingly interested in starting their own business and some are choosing franchising as it offers the opportunity of using a proven reliable business method. However, despite the low failure rate of franchises, like any other business venture, it is not completely risk free so it is important that individuals opt for the right franchise partner to support them from the very beginning and for the long haul.
The following question arises: if you have no prior experience in relation to the franchising industry, how can you be sure a particular franchise is the right option for you? The following answers to posed questions should provide basic information relating to choosing the right franchise partner and the possible questions you need to be asking any potential franchisor about a franchise opportunity.
1. Should I research the franchise industry?
Yes, yes and yes again! It is paramount to research the franchise industry if you are interested in a particular area of franchising, for example fast food pizzas or health and fitness business ventures, to research this area methodically.
You can research a particular franchise industry via on-line franchising directories, franchise magazines and on-line franchising resources. Find out as much information as you can, by visiting reputable franchising sources such as International Franchising Association (IFA) for advice and guidance on your area of interest. Sign up for weekly newsletters, subscribe to regular news articles, and be informed as you can about your area of franchising interest.
2. Have you prior business experience?
Perhaps one of the most important elements in deciding if you are right for franchising is to assess your own personal and professional skills in a self critical manner. Do you have prior business experience? Are you self-motivated and ambitious? Are you a leader?
Write down all your relevant skills and assess these skills critically. Then assess these skills according to guide lines set out by the International Franchise Association, and by the potential franchisor you are interested in approaching. Remember every franchisor will have a set of predefined franchisee requirements and you must meet every one of them in order to be successful in your attempts to buy into a franchise opportunity.
3. Can I talk to other franchisees?
Yes you can! You can approach existing franchisees in a professional way, by phone, email or in person. Be confident and certain of what you want to ask them. Have a set of questions written out so you are prepared to find out as much as you can about a potential franchise opportunity.
This is particularly beneficial and will give you good insights into how a particular franchise operates and how successful the franchise is. Ask them to be honest and find out the pros and the cons of the job. This will help you evaluate whether it is the right franchise for you.
4. Is there training offered?
All franchisors will provide potential franchisees with expert training seminars, on-going support and advice in the initial stages of your franchise operation. However, every franchisor has a different training scheme, and you must be aware of what individual franchisor's training covers, how long for and if there is any on-going support involved in the long term operation of your franchise.
The best training programs will cover all parts of running the day-to-day business activity, from market knowledge and stock management to merchandising expertise. Be aware of franchisors offering limited training, which suggests that a franchisor may not be interested or committed to your franchise and its success.
5. What support will be offered?
A good franchisor will offer effective support networks to optimize the success of your franchise. This should extend beyond the introductory training and the better franchisors will provide dedicated staff to ensure on-going support is at hand whenever needed.
Also good franchisors should help with attracting your initial customer or clientele base, by offering excellent media and PR campaigns, contacts and databases of customers you can attract. Furthermore, generating income on a daily basis should also be a requirement of your initial franchise, and support and assistance on generating this initial income, should be made available through your franchisor's support network.
6. What are my likely earnings?
It is important to remember like any business venture, you must be realistic when you decide to enter into a financial agreement with a franchisor, and to be specific as to what you can earn realistically in your first year. Ask to see business annual forecasts and sales histories of the franchise opportunity you are interested in becoming part of. This will be an excellent guide to do your own calculations for your franchise opportunity.
7. Can I see sales histories?
Yes you can! This is an excellent way to indicate future earnings and the best way to analyse other franchisee's sales histories. This will allow you to gain a realistic picture of the likely health of your business before you take over ownership. Despite all of this, you must put in a whole hearted effort to be committed and motivated to your business venture in order to make a positive ROI.
8. What involvement will I have with other franchisees?
Alongside the support given from your franchisor, support and advice will also come from other franchisees. This type of networking provides important opportunities to discuss problems, ideas and successes. In addition conversing with other franchisees will provide inspiration and motivation and create a sense of working with a team.
It is important to remember when deciding to enter into a franchise agreement that you have methodically researched the particular franchise industry you are interested in, and you are aware of the pros and cons associated with this franchise opportunity. Make sure that this franchise will work for your benefit, since this is your livelihood and that of your family's. Anything you can do to increase your knowledge of an industry sector will be advantageous in the long run. The best of luck!
No comments:
Post a Comment