Before making a big step in taking a franchise opportunity, one must have a desire to go along with being a new business owner. Remembering the fact that putting up a business is more than just to have something to keep one busy, but also to make it a success.
Let’s start with the common questions that a franchiser may ask before one finally decides to sign a contract:
- What is your main reason for franchising a business? Will this be your primary source of income? Is it something you will do alongside being employed? Do you have thoughts of owning more than one franchise in the future?
- Do you have the resources to start with the business? Are you ready to shell out more money should the need arise?
- How long do you intend to have the franchise?
- How much of a risk-taker are you?
- How involved can you be with the business?
- Do you have the right skills to become a good business owner?
Without having a proper answer to all the questions above, starting a franchise would be just another thought. No business can start without funds and to start with just a small business, still, you must realize that more than paying the franchise cost, there are still a lot more that needs to be taken care of. In the first few months of a business, it will need the most amount of its capital, and make less or no profit at all. Some take up to 3 years, depending on the kind of products or services as well as location and several other factors.
Keeping the same enthusiasm all throughout the business journey is the key to properly manage the business or to pass it on to another group of individuals, like your children. On the Franchiser’s agreement, the duration of owning the franchise is always stated. The franchisee should be able to create strategic planning on how to make the most out of the number of years stated on the agreement.
You may have people to work for you. But a business owner must have time t no check on his business. Other people taking advantage of your absence may lead to a total downfall of the business.
Although you don’t need to be a business expert to run a franchise as most of the corporate responsibilities would be handled by the franchiser, you must have some basic people management skills. You just need to reinvent yourself in a way that you mold yourself into the business that you plan to put up.
Narrowing Down Options
There are a lot of franchising opportunities that you may have crossed out after realizing what you really want. More than looking at different well-known brands try to check on the type of business and specific concepts, think of how it would well fit into the criteria that you have established regarding your set of skills, goals and risk tolerance.
Sometimes narrowing down your options may lead you to a point of choosing whether to put up a business that you are comfortable to start with or to learn something new because it is what is currently in demand. The risk may be a bit higher if you start with a business that you know nothing about but then, if you are more than 100% willing to take up training and seminars to be armed with the correct information and develop more skills, then by all means.
Help Your Franchisees Grow the Business
The franchisees, not necessarily, are experts in the field of marketing. Some may have just wanted to start with the business and carefully learn from it with your help. Franchisees expect that franchisers would give full support when it comes to marketing the franchise. The franchiser, being in the industry for quite some time may be able to provide valuable information on how to make things work. It can be done probably with the help of an expert to train the franchisees on how to handle the business better would be of greater help. Hiring a third-party expert to train own team can eventually make better resources for yourself to train future franchisees.
A subtle communication between the old and new franchisees can help a business grow. The experience that they may have while communicating with each other may help boost the confidence of the new franchisees in making good with the business. It is like having first-hand information and proven techniques that can help new franchisees to get their feet going with the business.
One must not get stuck with what he/she has been accustomed to training. There should always be room to innovate. Making marketing ‘gimmicks” is what makes the business succeed. Successful marketing techniques can be recognized by the number of franchisees of a business.
Finally, let the franchisees take heed in making the right decisions while running the business. Maybe they have something in mind that they think can be helpful in boosting their sales. But before they even jump into that, they should let you know if it is truly something that can be possibly done without harming anything or anyone in the process.