Running a franchise business
Everything you need to know
Running a franchise business has many advantages over compared with starting up a completely new company from scratch. You’ll have access to a proven business model, a well- known name and reputation to trade from. In addition, the need for publicity work will be reduced and, perhaps most encouragingly of all, franchises actually have a better success rate than independent start-ups.
Still, as with any business, there is an element of risk attached to becoming your own boss, even with the support of a franchise. Moreover, a complete understanding of the franchise opportunity will be key to your success as a business person.
If you’re looking to move into the world of franchising, then the key elements to consider are what you are getting into, who you are working with, if the partnership is a right fit and what you plan to get out of it. Here are some of the most important points you need to consider before running a franchise business.
How much will it cost?
Even the richest of people must be aware of how much a new business venture is going to cost them before making such an important investment.
The total investment required to get a franchise business off the ground can vary, but generally you are expected to have the funds to pay franchisor fees, purchase costs, your opening inventory and the amount of working capital necessary before breaking even.
Understanding the costs is vital to the success of the business, as you don’t want to run out of money when you are on the brink of success. It’s important to ask questions and ensure that the franchisor is proactive in supplying you with the full information regarding the franchise opportunity.
Another step regarding the cost of a franchise will be planning the financing of the business. Will you be taking out a business loan and where from? Many franchisors have partnerships with banks and institutions that can help you get funding at better rates. That often means that until an entrepreneur speaks to a franchise, they don’t realise how affordable it can be.
How much time will you have to invest?
Some entrepreneurs believe that because they have the support and back up of an established business behind them, they are effectively managers and not business owners. Remember that running a franchise business is not a shortcut to success – although it sure is a fantastic model the franchisee running it will be essential to the success of the business.
Most franchises will ask you to put as much time into your business as if it were your own start up. Investing time into a business is also a form of cost. When you join an industry, you should be passionate and it ought to be an opportunity that excites you.
Understanding exactly how to start the business as a franchisee and what is involved in the daily running of a franchise is a must. If you are unsure of the amount of time that you can contribute to the business, it’s a good idea to ask the franchisor if you can run the business on a part-time or full-time basis or if there are any services that can be outsourced. This can make your life a whole lot easier and save you valuable time.
Take some time to think about the industry you are getting into. If it’s a franchise that is in higher demand at certain times of the year, such as school holidays or weekends, then understanding that you’ll be required to work harder during those peak periods.
Always be clear from the outset of the commitment and time that is necessary to make the franchise a success.
What is the franchisor like?
When you join a franchise, you will be bound by a proven business model and specific processes. In order to establish a long and successful relationship, understanding as much as possible regarding the franchisor is essential to ensure they are a good fit for you personally.
Look at how long a company has been in business, their success rates and the existing franchisees network. If there is a remarkably high turnaround rate in franchise owners then ask yourself– why that is?
Talk to the franchisor to get a feel of what they can offer and talk to other franchisee owners if possible. You could even visit a franchise as a customer to learn more from an end-user perspective. Think about the support and service you require based on your skillset and if the franchisor is able to provide it. The more research and information you gather regarding the franchisor and the business opportunity, the easier it can be to make a decision.
Knowing that you won’t be alone, solely responsible for a business, is one of the biggest allures of being part of a franchise network – but it’s only good if you know the amount of support and service you are going to be receiving from the franchisor.
Asking for help is one of the hardest things that we have to do in general, let alone when it comes to the world of business. But if you know that the franchisor is ready and willing to help and will do everything in their power to help you succeed, it becomes a little easier.
The franchise business model largely depends on the success of each franchisee; the most successful franchises provide excellent support and work to have great relationships with each franchisee, then the business is more likely to succeed. Based on this principle, the more the franchisor invests in the franchise network, the more they will grow as a brand.
Ultimately, what is your goal for your franchise business?
Perhaps the most important thing to consider before running your own franchise business is if it can help you in your general life goals and achievements.
Have you set up the franchise because it is your dream job and you want to run it until retirement age? Will the franchise run alongside your current work as a part-time business opportunity? Does the franchise represent a way for you to get started in an industry that you are passionate about?
The clearer you are about what you aim to achieve in the short-term, medium-term and long-term, the easier it will be to run your franchise business and decide if the opportunity suits you.
We Make Footballers are a football coaching franchise that are passionate about empowering individuals to work in an industry they love, whilst achieving their financial and personal goals.
Our part-time and full-time franchise opportunities are available for coaches and business people from all backgrounds.