Is A Franchise Right For You?
Is a franchise right for you? If you have been wondering that, read our latest article to help you decide.
The franchise business model is an integral part of a thriving economy. Franchises encompass a wide sector of businesses from hospitality, food, healthcare, retail, home improvement, fitness centers, and many other industries.
Any business model, which touches on so many components in this consumer driven world, would be an alluring and smart investment choice.
Over the years, millions have invested in a franchise. And, many have led to great success stories when it comes to running a business and benefiting financially.
But it is important to note that everyone may not be cut out to be a franchise owner. Let us take a look at some key characteristics of an aspiring franchise owner.
Is a Franchise Right For You?
Consider These Points to Know For Sure
You Always Dreamed Of Being Your Own Boss
Being your own boss, also referred to commonly as freedom and flexibility, is without question the top desire that many people aspire to achieve.
For those that have suffered through micromanagement horror stories, no decision making leverage, and no freedom to control a difficult work schedule, being a franchise owner is a golden opportunity to rid yourself of these unappealing circumstances.
Investing in a franchise will allow entrepreneurs the flexibility, freedom and control that comes along with being your own boss. This benefit alone has driven many people to invest in a franchise.
You Like Meeting New People
You can’t be successful in running a franchising business without interacting with people.
Networking and communicating with customers as well as business partners, are critical components in successfully navigating through a franchising relationship.
Anyone who enjoys interacting and meeting new people would have a decided advantage if pursuing a franchising opportunity is on their wish list.
You Want To Invest In An Established Brand
Unlike starting a business from scratch, the franchising model affords the opportunity to work with an established brand. This can lead to a huge advantage when it comes to navigating through the infancy stages of any business.
Having an established brand often brings a potential customer base who are familiar with the business. This helps remove the element of mystery and solidifies the trust factor for consumers when it comes to purchasing the product or service being offered by a franchising business.
The power of a brand goes way beyond that however. They bring you systems, training, marketing, ongoing support and technology that provide a motivated franchisee all they need to succeed.
The key is are you motivated and willing to do what it takes to succeed?
You Want To Expand Your Business Portfolio
Owning a franchise is an important step in strengthening and growing your business profile.
Being a franchise owner provides valuable experience to not only successfully run your business, but allows an opportunity to potentially expand and become a multi unit franchise owner.
In addition, this experience can open the door for leadership opportunities within the franchising framework. It can lead to mentorship options, or coaching and speaking engagement opportunities. All of these opportunities would be a fantastic chance to strengthen and expand your business portfolio.
You Have Limited Business Experience
Contrary to what many people may think, owning a franchise does not require extensive business experience.
It is possible to have limited business experience, but still be a successful franchise owner.
Investing in a franchise comes with some immediate privileges such as training, marketing assistance, equipment/supplies, and important ongoing guidance from a franchisor.
This assistance provides much needed support for any individuals that may not have in-depth business knowledge and as a result, may struggle to keep the business afloat.
Pros And Cons Of Investing In A Franchise
Investing in a franchise allows entrepreneurs to take advantage of a business foundation that has already been established.
Investing in a growing franchise means there were other individuals that have taken over the reins of the same successful business model before you and have prospered. You can ride the coattails of this same successful business model as you proceed with your franchising endeavors.
Franchising Business Types Are Plentiful
A franchising business has fingerprints on just about every industry in today’s economy. From healthcare, fitness, retail, or food, no matter your preference, there is a high likelihood that a franchising opportunity is available within an industry you enjoy.
As with any business venture, the ultimate goal is to obtain financial security and build wealth for the future. Investing in a successful franchising business provides a great chance to make this a profitable opportunity.
Training And Support
One of the more important aspects of investing in a franchise is the chance to receive training and support to keep the business operating at peak condition.
The business support comes in the form of marketing assistance, field support, equipment and supplies, as well as ongoing training.
This is support that does not come along with starting a business from scratch, which makes it much more of a challenge to get your business off the ground.
No Extensive Business Background Needed
Starting a company from the ground up without extensive business knowledge would most certainly lead towards failure.
But with a franchising investment, this limitation does not mean the ultimate demise of your business.
In fact, having limited business knowledge could work in your favor in a franchise model scenario, since you would more likely be receptive to receiving any feedback from the franchisor that may be necessary to run your business. There would be very few, if any, preconceived ideas that you may possess, which could act as a roadblock or lead to business compatibility issues with the franchisor.
A franchise investment usually starts with a substantial initial investment, usually starting at $40,000-50,000.
This fee includes such items as equipment costs, rights to operate under the franchisor’s trademark, training, and supplies. It is important to ensure you have enough available capital to pay the initial fee for the franchising investment.
Since a franchising investment is a mutual business agreement, any profit that you earn is not entirely yours to keep. There are monthly royalty fees that must be paid to the franchisor. These payments normally fall in the range between 5% and 10% of the gross sales of your business. It is important to factor in this fee as this will have an impact on your overall profit margin.
Must Follow An Established Business Template
Being a franchise owner does not mean you have free reign to run the business however you like. Investing in a franchise means there is an established business model that you must follow. Adhering to this established business template is a critical factor in keeping the reputation and expectations of the franchising brand intact.
You Must Be All In All The Time
Owning a franchise takes some serious time and dedication, in order to run a successful operation.
This means (at least in the beginning) being present and focused everyday from a mental and physical standpoint. In the beginning, this could translate to longer hours, weekend work, and very little room for days off, in order to get the business launched and ready to scale. Once key people are in place managing your business, you become more of a CEO and the freedom and flexibility really open up.
Owning A Franchise Is Not For Everyone
Along with all the wonderful possibilities of owning a franchise, it is important to note that investing in this business model is not for everyone.
Investing in a franchise opportunity is not for the faint of heart. It takes patience, dedication, drive, an open mind, and a tamed ego to follow an established set of rules and business practices, in order to be successful in this franchising venture.
Is A Franchise Right For You?
The path to investing and being a successful franchise owner can be exciting and challenging at the same time. There are many potholes and detours that can make your road to being a franchise owner a challenging proposition, but the rewards can be tremendous!
In order to give you the best chance to succeed, it is best to consult with a professional, like That Franchise Guy, who can guide you through the process and give you the valuable information you need to see if a franchising opportunity is right for you.
If you are up for the challenge and think you have what it takes to proceed with investing in a franchising opportunity, contact That Franchise Guy.