If you want to start your own business, purchasing a franchise can be an alternative option for starting a brand from scratch. As a franchisee, you will have the additional security that comes with working for a ready-established brand with a customer base who are already familiar with what they offer, compared to starting a brand-new business that nobody has ever heard of. And, if you have never owned a business before, a franchise can be a great way to get started, with guidelines to follow and support on hand to help you make the right decisions. Generally speaking, franchisees tend to be more successful than entrepreneurs who start their own business from scratch because they have a ready-made brand, marketing is taken care of, and products are chosen by the franchisor who has plenty of resources to figure out what works and what doesn’t. If you want to start your own business, but with less trial and error, a franchise opportunity could be right for you.
But, are you right for a franchise? Here are some of the main factors you will need to consider to determine if buying a franchise is the ideal choice for your business career.
What Do You Enjoy?
You wouldn’t start your own business doing something that you hate, so don’t pick a franchise opportunity in something that you are not passionate about. Remember that even though you are running a franchise from an established brand, you are ultimately the business owner and how you feel about your business is going to have an effect on its success. Thankfully, there’s a franchise for everybody. Whether you are passionate about travel, teaching, food, animals, or technology, you can find a suitable franchise UK at Franchise Local. Search the site to find franchises for sale and all franchise opportunities in your local area that fit your criteria for running a small business. You can find restaurants, retail stores, or businesses that you can run online from the comfort of your own home - find details here.
Have You Got the Money?
Investing cash is a must, regardless of the type of business model you go for. The good news is that franchises often tend to be cheaper to set up, depending on the type of franchise that you go for. And since they are typically ready-established brands that customers are already familiar with, you can start turning over a profit much sooner compared to starting a business from scratch. Some franchises are perfect for those on a budget, with several options available where you can get your business up and running for less than £1000. On the other hand, others will require a much more substantial payment, so do your research, set your budget, and decide how you are going to fund it. In some cases, you might be able to get a business loan to buy a franchise.
Do You Need to Be the Ultimate Boss?
As a franchisee, you are the boss when it comes to day-to-day operations. You’ll be responsible for things like hiring staff, bookkeeping, firing people, delegating tasks, inventory control, and all the usual stuff. However, unlike owning your own business, you can’t have the same element of control when it comes to a franchise. When you buy a franchise, you are committing to running that business in line with the brand’s requirements, and you might need to get approval for certain decisions. You certainly couldn’t go out and make decisions like changing over the website, redesigning your logo, or adding a new product to your range without going through a lengthy approval process. So, while you are the boss, you don’t have the same element of control that you would if it was your own brand. Consider if this is important to you, or if you’re happy to ensure that everything is done according to how the franchisor requires it.
Do You Want to Work from Home?
The majority of franchise opportunities will require you to work with the general public, hire employees, and go into a physical work location. Unlike starting your own business, where you could set it up so that you can work from home all the time or work with freelancers rather than employees, this might not always be the case when it comes to buying a franchise. But that being said, work-from-home franchise opportunities are available, so if you want a job where you can choose your own hours and work in your pyjamas all day, it’s definitely doable as a franchisee with the right opportunity. Take a look at what’s available - you might be able to buy an online travel franchise, for example, or a pet-sitting franchise where you look after animals in your own home.
Are You Willing to Take Directions from the Franchisor?
While it is a business opportunity, entrepreneurs don’t often make the best franchisees. That’s because they are used to doing things their own way and having the final say, and buying a franchise can leave them feeling more like an employee than the business owner. On the other hand, if you have been a successful employee for many years and are used to taking directions and doing things for the good of the brand that you work for, you are likely to succeed as a franchisee. Franchisors always have the final say in what happens with your business, and you’ll need to follow their instructions and guidelines closely. Ask yourself, is this something that you are ready for?
Is There a Demand for the Franchise?
Another important question to ask is whether or not there is a demand for the franchise that you are planning to invest in, in the area where you would like to set it up. Many franchisors will already have done research into certain areas and will only allow you to set up a brand location where is a demand for it. It’s also worth doing some of your own research; get out and speak to locals in your area before you decide which franchise you want to invest in, to help you get a better idea of what’s going to do well. However, that being said, don’t choose a franchise based purely on what the people in your area are hoping for; it’s got to be something that you’re going to enjoy too.
Are You Ready for the Hard Work?
Many new franchisees make the mistake of believing that investing in a franchise means that they get a business in a box, can put their feet up, and watch the customers roll in - but that isn’t always the case. Unless you are investing in a wildly successful global franchise like McDonald’s or Starbucks, where you can pretty much be guaranteed customers straight away, you’re likely going to have to put some work in to let your market know that you are there and where to find you. And, even if you are investing in a really well-known franchise, don’t forget that customers might not be aware of the new location at the start so it’s up to you to make sure that the word is spread.
Running a franchise can be an excellent investment idea if you like the sound of owning a well-known, established business with a ready customer base. But is it right for you?