1] Evaluate your risk tolerance
Opening a new business is a terrible prospect. There are many personal, professional and financial risks to consider. It is natural to think about such a profound step in your career and find ways to manage risk and increase your chances of success.
According to a survey conducted by the Small Business Administration, 62% of non-franchising companies failed within six years. Another study by the American Chamber of Commerce found that 97% of franchises remain open after five years.
Studies conducted by these independent third-party organizations clearly show that the risk of choosing a franchise business is much lower than the risk of starting a business.
2] Use what you have
Listing your strengths is easy. However, it is also important to have an honest assessment of your weaknesses when doing business.
Before you start choosing a franchise, take the time to develop a list that honestly describes your strengths and weaknesses as potential business owners. Then use this profile as a tool to help the decision making process.
Ask the franchisee about the issue of performing duties and compare the job requirements to your personal data. If the business is likely to be appropriate, then the skills needed to run the business are either your existing skills or skills that you can learn quickly. If this is not the case, it is best to continue looking.
If a certain aspect of a franchise has a steep learning curve, but the business is very appropriate, you may want to consider hiring experienced people. If this is your choice, be sure to include their salary and benefits in your financial business plan.
3] Remember to run this company
Many potential franchisees have made mistakes and believe that they are limited to buying franchises in the current field. In fact, this is probably the worst way.
Some franchisees do not allow technicians in specific industries to purchase franchises in the industry. For example, a mechanic may not be allowed to purchase a car repair franchise. Skilled technicians sometimes find it difficult to get through the transition from actual work to management work, and want to go back to the floor to get the job they are familiar with.
The problem with this is that you run your business to grow your business, and franchisees want to see growth on the bottom line. Business owners need to connect, market and interact with customers. If you work too much on the floor of a car repair franchise, then the owner - even if he is a skilled technician - needs to hire more mechanics.
Basic business skills can be transferred to any franchise. If your current position involves a general role like sales, marketing or accounting, then your franchise options are almost limitless.
4] Enterprises without business decline
No business will be affected by the faltering economy.
However, certain industries are considered to be "resistance" of recession. These are usually products and services that people can't do, no matter how much budget they cut.
The good news is that there are hundreds of franchise opportunities in a recessionary industry. Here are just a few examples:
Top anti-recession industry :Food, Car, Healthcare, Medical, Clothing, Education
Concessionary franchise industry : fast food restaurant · car repair, parts and repairs · weight loss and fitness · resale shops and discounts [dollars] stores · education [counselling] and child care
5] Objectively evaluate professional advice from individual sources
Friends and family members are most concerned, their advice comes from a place of love and concern for your happiness. No one would recommend personal, professional and financial commitments to conduct business without consulting a loved one.
But friends and family are not subject matter experts, and their advice can be - intentional or unintentional - to stop new business ventures. People who love you are worried that if you fail, what happens is that their instinct is to protect you from risk.
When you finally decide whether to continue to purchase the franchise, you will of course carefully weigh all the suggestions you receive. The key is to attach great importance to the advice of industry professionals.
6] No such thing as a free lunch
There are countless "free" franchisors and consultants who claim to provide impartial information about franchise opportunities. They will work with you to assess your needs and use your professional information to help you provide advice that suits your franchise opportunities.
The problem with these services is that they can sell franchises through franchises. This means that they will naturally only show you the options they will get paid. For high-profile franchises that may provide two to four times the average commission, they may direct customers to these businesses, whether or not they match well.
These broker services have access to detailed data on hundreds of franchises and can be a good source of information. Just be cautious about their advice and get a second opinion before investing.
7] Adjusting hype
There has never been this maxim "If this sounds too good to be true, it may be more applicable." When evaluating potential franchise opportunities, you will hear a lot of hype - good and bad.
Between marketing and humanity, success stories are as easy to spread as wildfires. Think about the guy who eats the subway to lose weight - this story is so common that it is almost impossible to separate the public fable from the restaurant. The hype surrounding the marketing campaign will have an impact on potential metro franchisees for the foreseeable future.
When things go wrong, it is natural for people to look for blame. Therefore, negative, emotional franchise stories can also occur in circulation. However, keep in mind that the subtle details that have produced such a situation have never been discussed; only compelling results.
No one suggests that you completely ignore these stories, because the hidden benefit is that the hype has a valuable course worth learning. Learn from them what you can do while keeping in mind what they are: the unique circumstances of a complex background story, whether or not you choose the same franchise, may have nothing to do with your success.
8] Beyond big brands
Sometimes it's easy to forget that there are thousands of franchise opportunities there, because big-name brands get everyone's attention. When you're in the early stages of search, it's a good idea to bypass the over-marketing of large franchises and try to understand the "unnamed" franchise in the industry you're interested in.
Little-known franchise brands have many advantages. For example, they are usually the most advanced concepts and can get a lot of marketing attention. The little-known franchise has not yet planned your local market. And they usually start at a lower cost, which means less financial risk.
Of course, you may be looking for security and benefits from a big franchise. Standards such as national marketing campaigns, standardized employee training, management support, and strong purchasing power may be top priorities for your list of franchises, and there are no issues. However, if you are not interested in another immediately recognizable box in another bar mall, then there is no name ' the franchise may be right for you.
9] Beyond price tags
Just because the franchise is more expensive does not mean it will be more successful.
It is important to assess all aspects of franchising - financial projections, monthly franchise fees, franchise support levels, problem response times, customer base and marketing, and more. Price tags are a factor to consider, but should not be the only criterion for assessing the quality of business opportunities.
Once you narrow your preferences for a particular industry, you must conduct due diligence on two or three franchises in the industry. Collecting enough information about several comparable franchises will make you make an informed decision.
10] Comparison shop
Once you decide that a franchise is right for you, keep looking.
If you decide to buy the franchise for Coffee House A, it's time to start looking for reasons to not buy it. Create a list of issues and talk to the owners of Coffee House B and Coffee House C.
Outspoken - ask competitive franchisees why they think their business is better than coffee houses. Ask them what makes them choose B to exceed A and C. Ask if they would recommend you to purchase the same franchise and don't stop digging until you and #39; re-clarify the reason [or reason] for their answer.
Create a spreadsheet to compare the details of the franchise. Includes data on benefits provided, financial commitments required, estimated monthly expenses, commercial lease requirements and franchise fees.
If your franchise preferences stand the test, then you are on the right path.
11] Contact current and previous franchise rights
The best way to understand if a franchise is right for you is to get behind the scenes and ask a lot of questions.
Please prepare a list of questions before making a purchase decision. Contact at least five current franchises and schedule an appointment to discuss your interest in the business. Whatever you discuss, be sure to ask...
Orignal From: 21 Secrets of franchise business success
No comments:
Post a Comment