Tired of the corporate career path, but uncertain which business to invest in? Deciding to own a franchise is one of the best ways to fulfill the goal of becoming a business owner. With the right franchise, you can enjoy the rewards of being your own boss, while still having access to a tried-and-tested business model. Before taking the plunge, it is important to explore the different options out there – and answer some of the most frequently asked questions from aspiring business owners.
Before delving into the nitty-gritty of starting any franchise, it pays to pause and think through your own goals and motivations. Having a business plan in place before starting the process is essential, and it should identify what you want to achieve, and – most importantly – how you plan to achieve it. This plan should include identifying your target markets, setting out a financial plan, finding suitable premises or considering retail space, and, of course, understanding the laws and regulations that you will need to navigate.
Once the groundwork is completed, it’s time to begin the process of finding the right franchise business. Generally, your first step should be to identify the sector you would like to invest in, and then zero in on the franchise concept that best suits your skills and interests. In the US, some of the most popular franchise industries include food and beverage, automotive, retail/online stores, service, home services, and health and fitness. The IFPG often publishes surveys and commercial reports that can help you gain a deeper insight into the sector and current franchise trends.
Researching the market is important: you should take the time to scrutinize the opportunities available to you, and this includes examining the range of franchises and their associated costs, fees, and conditions. You may then already have a few choices in mind. Nonetheless, it’s wise to go through an exhaustive list of franchises, their products and services, and scour as many reviews and user ratings available.
Of equal importance is the franchisor itself. Get to know the franchisor, speak to other franchisees, and understand how the business franchise is governed. All franchisors should have a quality franchise system that protects the interests of both the business and the franchisees. Take the time to learn about the training opportunities, the marketing support available, the supply chain practices, and financial data.
Lastly, you should be sure to always seek legal advice. Make sure both you and your chosen franchisor sign a legally binding franchise agreement before investing.
Investing in a franchise business is a big step – and there are no shortcuts. It’s important to take your time and arm yourself with the right information. The IFPG is the perfect resource to help take the guesswork out of the process, and our members will provide you with an array of options, whether you’re already a business owner who wants to grow your current business or a first-time entrepreneur.
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