There are numerous factors to consider before considering becoming a franchise owner. Capital investments to think of, business types to go through and personality traits to consider are few to mention. Even if you have checked off every personal characteristic, make sure that you have considered other more personal aspects also of franchise ownership. The blog will provide you with few things to look at while you search for a good match with a franchisor.
1. Your Fondness for the Brand.
No matter how efficient and potential you are in terms of running a business, if you are not fond of the brand of which you’re an intrinsic part, the chances of scaling up the business reduces considerably. You should have love, admiration and respect for the brand and products/services provided by it. If you are not fond of brand and services, you will not have much to speak with admiration from within. Choose the brand, you’re passionate about.
2. Are you all devoted?
Your devotion towards the work determines the success of your business. Well, your devotion and dedication doesn’t imply that you work 24/7 but it asks whether you’re willing to do what it takes to meet your goals. Being a franchise owner, you have to be willing to put in the necessary time to an extent that you may have to miss out some important events like child’s school event to attend. You have to ask yourself, if you’re willing to miss these things. Certain types of franchises bloom during holidays because of which you will have to sacrifice the bliss of relaxation and time to spend with family. Are you fine with that? The answers to these questions will help shed light if certain franchise type or franchising in general is a right choice for you.
3. Abiding the established business model is must.
When you’re a franchisee, in order to scale up and succeed, abiding by the established business model with rules on branding, delivery, designs, equipment and other non-negotiable parts becomes inevitable. Besides that, operational guidelines by franchisor are to be followed. If you’re not up to follow the pre-ordained business model, you may be a better business owner but not a good franchise partner.
4. Consider Financial Figures:
While investing in a franchise, you can have a talk with existing franchisees and get financial figures from franchisors to get an idea about what to expect in the beginning. It is certainly tricky to evaluate the profitability of a franchise since you cannot rely on the profitability from other franchise locations- that would be affected by location and number of other factors. Get a detailed list of the financials from other franchises, investigate how successful ones became profitable, and find out whether other franchises have recently failed. Also, while buying a franchise unlike starting your own business, where all the capital is invested in your operations, a considerable part of your initial capital goes to the franchisor as fees for training, equipment and licensing rights.
5. Know your Personal Interests, Strengths and Goals:
Once you know what you intend to get from your business, it’s also equally important for you to analyze who you are and particularly what are you good at. You need to examine your skill sets. You should know what you’re comfortable with, what disposition you have acquired in your professional experience. You also need to know if you like interacting with customers behind the counter of a retail location or being out in the field working with clients and customers.
6. Are You a Leader?
The primary role of a leader is to motivate others to perform in a better manner. You will need your team to understand your dream, your franchise and your methods. You will be the figurehead of the franchise and your style of leadership will influence the success and progress of the team. Regardless of the franchise you buy, if teaching new skills and coaching others is enjoyed by you, you will surely cut the mustard and build good fellowship.
If aforementioned things are considered sincerely, you will get better clarity for your franchising journey.
My name Is Dhinal Baxi and I am from Ahmedabad, Gujarat, India. I am a founder of franchise Insider . As a founder, we have served hundreds of clients. My experience from the financial sector has helped them to achieve great success in the franchise world. Franchise Insider is one of the leading franchise advisory and consulting company.