For those business-minded people or entrepreneurs who are eyeing to start up their own business, getting franchise businesses can be a good alternative. It has lesser risk than that of starting your own brand or business from scratch. The great thing about getting a franchise is that almost all the work is done — the business plan; established and strong recognition of brand name is already evident. Plus, most of the marketing and advertising efforts are mostly done by the franchisor, which you can consider as reduction to your operation budget already. Nevertheless, just like any new business, there is a still risk you may have to consider. Though getting a franchise also buys you a lot of time and things to do, your business’ success still relies on you.
Here are a few tips you may want to consider before taking a franchise business:
1. Do your research.
You are solely responsible for the due diligence before you invest, as Founder and CEO of CorpNet.com, Nellie Akalp said. Your knowledge and skills are your weapons in the business warzone. Though getting a franchisee may seem to be easy because almost all the hardest work are done, it is still important that you keep updated about things before investing. Know about the company or brand you intend to franchise, it pays to check thoroughly the franchisor’s capacity to support you. Another thing to research about is the company’s solid track record, it is always better to go for a franchise of a business whose operations and sales are proven successful.
2. Consult a Specialist.
Do not just give in to charismatic franchise agents offering you franchise businesses. It is very important that you are ready and that you have studied the concept of the business franchise that is being presented to you. You can get help in reviewing the contracts carefully by a lawyer, the numbers by the accountant or a business development advisor who has extensive experience in the franchising industry. You should know exactly what you are getting yourself into before giving it your hard-earned money.
3. Know your net worth and liquid capital.
Having a bigger bank account is usually more attractive to franchisors than having bigger assets. You must be confident that you are liquid enough to keep your franchising business going despite off seasons of the business.
4. Be open to learning and socialize with like-minded individuals.
You can never really learn much by yourself. To see and know more about what’s on offer, it is vital that you meet the right people in the industry. Attending seminars, trade shows and the likes provide a lot of help. This way, you can also widen your horizons, and know about other companies you may not have crossed path yet with who actually offer better deals.