Working for yourself is as attractive as it sounds but its not for everybody.
Owners need to have the necessary commitment, drive and discipline for any business to be a success although the rewards can be significant and very worthwhile.
Why buy a franchise? - put simply you minimise any risk. Statistics regarding the succes of new start-up enterprises suggest that your chances of going it alone from scratch are not great.
With a franchise you have immediate access to business systems that have been trailed and proven in the market place. There is often additional support in the way of marketing, management advice and training. While this can restrict your ability to do your own thing, it certainly avoids learning things the hard way.
Franchises are increasingly popular and the variety available to choose from is extensive and will take considerable research on your part upon deciding what you would like.
A typical franchise offers:
1) A franchise licence - which allows you to use the Franchisor's business system, tools, and know-how for a particular area. You usually pay a fee for this, and in some cases an ongoing royalty also.
(2) A proven business system – this will generally consist of marketing and management tools, the formula for doing the business, job training, and on-going product development and support. All this allows you more time to get involved in the doing part of the business.
(3) An existing reputation – a strong market presence (brand), and if purchasing an existing franchise the benefits of an existing customer base, while with a new area a good reputation can help in providing credibility to assist in attracting custom.
(4) Track record (History) – because most franchises have been built off time-proven systems you should be able to obtain good records on the average length of time to reach break-even, your likely return on investment, expenses, hours, and skills required to succeed.
Before buying a franchise make sure you are doing something that works for you, and that you will enjoy. Talk to existing franchisees, they will be one of the richest sources of information about any given franchise and can give you a real insight to the business. While buying a franchise is considered to be a lower risk option, like any business it is no guarantee for success.
