What does a good business look like? More importantly, what makes a good franchise and how do you recognise a great opportunity? There is a lot of choice out there and it can sometimes be difficult to choose exactly the right fit, something which fulfils your ambitions while also matching your skill set.
Look at Your Finances
One of the first things you are going to need to decide is how much money you are will be able to put into the franchise. This can range from small amounts that are readily available to larger sums which may require you to go to a bank for a loan. It’s not just financing the initial start–up that you have to consider but how you are going to operate in the short term while you get everything to a productive and profitable state.
Look at Yourself
Next you need to understand your own strengths and weaknesses. Are you going to be looking at a franchise in a sector you are already familiar with? Do you want to move in a completely different direction and have transferrable skills which can be used? What are you passionate about and can you find a franchise that somehow meets that passion? Another issue you need to consider is how much support you are going to get from those around you. Taking on a franchise is a big step and you’ll want those nearest and dearest to you to be fully on board.
Doing Your Research
Once you know what you are looking for, you can begin researching the market and looking at a range of different franchises. There are franchises for practically every type of business from the hospitality industry and services to management, recruitment and construction to name just a few. You can certainly use the internet to get a deeper understanding of the sector you are moving into if you are going for a complete change. The more knowledge you have about the product or service then the more likely you are to make good decisions when it comes to finding the right franchise.
Build a List
Building a list of potential franchise opportunities should be easy if you know where and what to look for because you have done your research. The next step is to cut down your list and carry out more specific research for your chosen business – that includes doing as much due diligence as possible such as directly contacting and talking to current franchisees.
While it might be an extra cost, it’s always a good idea to get the services of a franchise specialist who can help steer you in the right direction and also work with you to carry out that vital due diligence. You will also need to hire the services of a franchise solicitor to deal with any legal matters.
The biggest tip we can give for choosing the right franchise is to take your time. While you might be in a hurry to get up and running, it pays to make any decisions in the cold light of day. Always give yourself a cooling off period where you can weigh the pros and cons before entering into a franchise agreement. After all, getting it wrong can prove to be an expensive mistake.