1. FIND AN INDUSTRY YOU’RE PASSIONATE ABOUT
Just because you are going for a franchise rather than a business set-up from scratch, doesn’t mean you should compromise on what’s important to you. Rather than focusing on a specific franchise you think you will like, take a look at the industry as whole. If a barista is what you want to be about, there are plenty of different options out there for this industry. By not being too specific, but also keeping your interests in mind, you can focus on the reputation, return on investment and history of success of the franchise before making a final decision.
2. CHOOSE A REPUTABLE BRAND
Seeing a new McDonald’s or Starbucks opening up every other week makes you think that these would be successful options for your franchise choice. However, you need to take a look at the bigger picture and uncover what goes on behind the scenes. Talking to other franchise owners and conducting the proper research will help you to get a better understanding of how the franchise works and how your potential franchiser will interact with you. This is especially important as it can demonstrate how much support you will receive. If you have no experience in running a business more support would be necessary to get you off to a running start.
3. DETERMINE ELIGIBILITY
Some franchises require their owners to be on-site as a working manager for a minimum number of hours a week. You may also have to find your own suppliers, obtain licenses and ensure employee obligations are met. The level of involvement into these operations elements will vary from franchise to franchise, but they are vital to determine whether it is suitable for your abilities, time and overall enjoyment.
4. BORROWING CAPACITY
While in your research phase you will also need to look into both the start-up and ongoing fees of running the business. Once you have wrapped your head around this, determine where this capital will come from, i.e. bank loan or personal savings. If you require a loan, make sure you that you have the correct borrowing capacity to make it happen. While also on the finance side of things, you will need to consider how you will manage if the franchise is not as successful as planned, especially at its opening stage.
5. SEEK PROFESSIONAL ADVICE
A Google rampage simply isn’t enough to start making big business and financial decisions. Rather than got lost in a sea of contracts, loans and marketing material, see advice from legal and accounting professionals. By doing so, you can go with your best foot forward into this new business venture with confidence in your choice. Contact the iBusiness Group consultants on 1300 587 985 to find out how we can help you in your quest to becoming a franchisee.