Guide to Buying a Franchise
Published on: 2009-10-23
It is a well known fact that buying a franchise can provide you with instant brand recognition, training, support and the collective experience of other franchisees within the organisation you choose. The mistake most people make is that, amongst all the excitement of buying a franchise, they forget or ignore the words of warning that should be remembered when buying any kind of business.There is no guarantee of success.
Buying a franchise will not guarantee you future success. You need to put in the hard work every day just like you would for any other business. You will be the one that your staff look up to for direction and leadership. It’s always worth remembering that what you put in is what you get out. Franchises can be a bit like a puzzle because only when you put your pieces of the puzzle (hard work, leadership, ambition) together with the pieces supplied to you by a good franchise(support, learning, experience, brand recognition) do you get the full picture, a successful business that makes you wealthy.Start looking.
There are nearly 800 recognised franchises in the UK to choose from and our franchise section has a wide variety to choose from. It’s up to you to decide which franchise meets your criteria and then request further information from the franchiser. Franchisers normally have literature they can send you which should give you a better idea of what their franchise involves. Make sure you have an interest.
When buying a franchise, make absolutely sure you have some interest in your sector of choice. Only a true interest for the franchise sector you’re in will keep you motivated when the first few months of excitement and novelty are behind you. You need to like what you are doing. After all, isn’t that the reason for leaving a well paid job to become your own boss.Look for experience.
There are numerous franchises out there and, quite likely, there will be more than one franchise to choose from in your chosen sector. The important thing to look for is experience. Make sure the franchisor has a number of years experience in the industry because that is what you are paying for. What’s the point of buying a franchise from an inexperienced company? You may as well start your own business from scratch and learn as you go. Ask about the training provided because good training in based on experience.Show me the money!
Decide what level of personal investment you would like to contribute. This can be a tricky decision to make because you may be looking at getting finance. Major Banks do normally favour franchises with tried and tested franchise systems, and are normally willing to finance 70% of the start-up costs. Everybody will have a different figure in mind and it’s up to you to decide what you’re looking to invest.If you fail to plan, you plan to fail.
Most franchisers will help you put together a business plan for your new business. Don’t make the mistake of writing a business plan to raise finance and then ignore it once you get the finance. Business plans are excellent tools for helping you gauge your performance and set objectives to grow your business.
So now that you have an idea of what questions you need to ask both yourself and the franchisor, it’s up to you to decide whether you have what it takes.
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