Top Tips On How To Find And Grow A Successful Franchise

Be your own brilliant boss - how to build a great franchise
sky-1873934_1920

From pizza to pets, from restaurants to running kids parties…You name it. There is probably a franchise for it.

 

There are thousands of opportunities to be your own boss and take on a franchise.

 

Champion Idea

 

Investing in a franchise is a good way to be your own boss without having to take all the risk of coming up with, and proving, a new idea. With a franchise you’re buying into a business model and formula that’s already been proven elsewhere.

 

Earnometer (out of 4):  championtipsred-1championtipsred-1championtipsred-1championtipsred-1

 

A good franchise can earn you thousands of pounds per month, depending on the quality of the franchise, product, location and time and investment you can put into it.

 

Key Requirements:

 

  • The money and time to invest in a franchise. This is about being your own boss, working hard and taking on the responsibility to make the franchise successful and profitable.

     

Champion Tips 

  • Like any other business you need to be confident about the product. Are you passionate about it? Are you confident about selling it? Does it have unique advantages or selling points compared to the competition? Is it popular and selling well in other territories?

  • Ensure that you have exclusivity in your territory and that the territory is large enough to support the franchise. Do some direct research into similar territories and products so that you gain real confidence that you can make money.

  • Find out exactly what support you will get from the franchisor in terms of marketing, infrastructure, equipment, training and supporting manuals and operational procedures. Does the franchisor really help set-up and develop your potential business?

  • Check what commitments the franchisor is willing to make to support the brand and product in the future, including strong research development to help you stay ahead of the competition.

  • Speak to other franchisees to find out the pros and cons, the challenges and the secrets to success.

  • Really examine the finances and business model with a fine tooth comb and come up with an achievable and realistic (rather than too optimistic) plan. Ask yourself if the figures really add up? Do your own market research to check the strength of the market, don’t just take the franchisor’s word for it.

  • Assess the risks and build in a contingency if things go wrong or go slower than expected. Remember you need to afford to pay any upfront and ongoing franchise fees so build this into your model and finances.

  • Look at the bigger picture. Think about the economic climate and market and consumer trends. Are you in the right industry and have you got the right product both now, and for the future?

  • Always watch out for hidden cost and clauses. Understand exactly what you have to pay for and when. Understand what guarantees and liabilities you face if, for example, equipment goes wrong or the products are defective. Also consider any extra expenses you will need to factor in – staff, rent, rates, telecoms and other running costs. Finally, consider if there are any targets you need to hit to keep hold of the franchise.

  • Think about your longer term goals. Taking on a franchise should not be done lightly as you may have to pay a decent amount of money up front. It is normally not a short term commitment and it will take time to make a good return on your outlay. Set your goals and ambitions up front and make sure you have a solid and long term commitment from the franchisor.

  • It’s a good idea to seek expert and professional help to validate your assumptions, financials and business model.

  •  The most important thing to ask yourself is – are you really up for it? Are you passionate about it? Do you have the energy, stamina and skills to pull it off?

 

Champion Links 

 

The British Franchising Association – which provides an important accreditation for franchisors. You should check your potential franchise is accredited and recognised.

Which Franchise

Franchise Direct

 

Categories
Feature ArticlesJob FeaturesNew Ideas
No Comment

Leave a Reply

*

*

 

FREE money tips and secrets.

We will never send spam.

Our privacy policy

RELATED BY