Look around your high street and you’ll probably see many well-known brand names. What you might not know is that quite a few of these are franchises.
If you own a business, it’s a popular way to grow your brand and spread your reach without investing large amounts of capital.
On the other hand, if you want to run a business but don’t want to start from the ground up, a franchise is a good way to hitch onto with a ready-made brand and a decent reputation.
Buying a Franchise
Deciding to run a franchise is a big decision and it requires you to make a full commitment. Not only will you be spending your own money to set up the franchise, you will largely be responsible for the day to day running and its success or failure.
Here are some important tips that you need to keep in mind:
- Find the right franchise: Ideally, you want something that gets you up in the morning and which has a system in place that provides the support you are looking for. While you can learn on the job, the more your skill set matches the franchise you are taking on the quicker you will be up and running.
- Make sure it’s a business model you can follow: The idea of a franchise is that it already has a system that has proved successful. While you will be operating the business basically as an owner would, you also have to follow said system. Make sure you are comfortable with this before you decide to take on the responsibility and commit your finances.
- Be prepared to learn: Even if you’ve been around for a while and know your onions, you need to be prepared to learn new things. Continually find ways to boost your business skills and discover more about the industry you now find yourself in. In other words, be a life long learner.
Franchising Your Business
The other side of the coin, of course, is offering your business out as a franchise. This is also a huge step but it can certainly deliver huge dividends if you get it right.
- Be sure it’s the right time: The first thing you need to focus on is whether it’s actually the right time to start franchising. Is your brand solid? Is it repeatable in new locations? Do you have the plan in place that will enable the franchisors you take on to flourish? These are simple questions you need to answer before taking the next step.
- Choosing the right franchisees: Assuming that you have put in place all the appropriate processes and are ready to move forward, the big challenge is going to be finding the perfect franchisees. It pays to be choosey and pick those individuals you think are going to add to your brand and help you make this part of your business growth a success.
- Don’t spread your resources too thinly: Starting small and building up slowly will give you a chance to boost your brand and modify your business model as you move along.
- Hire a good franchise lawyer: It’s important to have the right support services in place when you decide to move into the world of franchising. That includes having a decent franchise lawyer on your payroll who can give you advice and guidance on setting out documents and contracts.
Of course, there’s a lot more to being a franchisor or franchisee than the few select points above. Before you decide to move forward, it makes sense to get the advice of a franchise specialist. They’ll be able to guide you through the process and help you avoid the common pitfalls that many people experience.