Buying A Franchise Business – How To Choose?
Buying a Franchise is a great business opportunity as the majority of franchisees are still trading successfully after 7 years (source – US Department of Commerce figures). Before you start looking at franchises, decide which market niche you want to enter. Choose a field that not only creates a livelihood but one that you personally will enjoy.
You also have to analyse your self. Are you good at sales? If you do not like being cooped in to one environment, then a franchise which demands that you out and meet people might be good for you.
Do you prefer it if the customer comes to you? If you prefer to have a retail outlet where you task is to ensure that the environment is as conducive as possible so that customers will be more inclined to shop, then a fast food franchise or similar might be up your street.
Where does your expertise and strength lie? This analysis will determine the franchise that you choose. Always choose the option that is right for you!
Some franchises do all the market research for you and even help you to choose a location for your business. Your job is then to manage the business, keep proper accounting records, always be at hand and control the staff. This would be ideal for a person with good management skills.
Other franchises ask you to work from home, set up a mini office and then go out and network with local business to generate your income. This might suit people who do not like to be tied down and handle rejection fairly easily.
Once you have found the niche that you enjoy, then start looking at all the franchises available in this field.
Choose a franchise which has a proven track record, and then speak to existing franchisees. By speaking to them you will be able to quickly understand the business and the pit falls. Spend your free time analysing the market and visit the library if you require further information.
Most franchisors offer excellent training and long term support. Some even have refresher courses throughout the year which you can attend.
The advantages of working for yourself, but not by yourself are what many franchises try to encapsulate. The disadvantages of buying a franchise are that you have are restricted in many areas.
If you’re ready to make the commitment, franchising can be a rewarding, and often highly lucrative business. Remember to take professional advice before signing any legal documents.