If you’re thinking about joining a franchise, there are a lot of things to consider first. This complete guide will help you start your own business in the world of franchising.
First and foremost you need to decide if a franchise is a right choice for you and your professional life. Would you be better off starting your own business from scratch? Do you have the finances to join the franchise? Are you looking for a part-time or full-time opportunity? Read on for the full guide on franchising opportunities.
What is franchising?
First off, let’s talk about what franchising is. A franchise is a business model that involves licensing an established brand name to run as an independent entity under certain guidelines and standards. You pay an upfront fee to purchase the rights to use the name and sell products or services under that brand, which includes marketing materials and training on how to run the business, along with ongoing support from the parent company.
Before starting a franchise you should also read 6 things to do before buying a franchise.
The benefits of franchising include:
– Access to a large customer base – the larger the franchise network grows, the more customers there are who know about and trust your product or service.
– Reduced risk – you get access to proven systems, practices and procedures that have been successful over time in another location (or multiple locations) with many other franchisees. In other words, someone has already done all of this before so now all you have left is just follow those steps! This is a huge plus for franchising opportunities.
– Franchising will also help you avoid some of the pitfalls of owning your own business by allowing you to focus on what you do best: running your company and making it successful.
– Franchise opportunities are a great way to get into business for yourself, without the worries of knowing where to start.
If you want to read more about Franchise opportunities Vs Independent Business then you can read our blog post here.
Tips on how to get started with franchising:
1. Research the business opportunity
Before you sign up for anything, do your homework! Look into the company that’s offering the franchise opportunity – check their website and social media presence, read reviews from previous customers or employees (if possible), and speak with current employees about what it’s like working there.
2. Find out what’s involved and how much it will cost
This is a huge factor in deciding if you can afford the franchise opportunity that interests you the most. Do you have the capital to pay the upfront costs? Do you have the finances whilst you build your business? What is involved in running the franchise? Will it be a part-time opportunity or a full-time one?
3. Figure out your budget
Similar to the last point, before getting involved in anything figure out your own budget and if you can afford to join this franchise or if there is a different one with a lower sign-up fee.
4. Choose Wisely
If there are multiple options available for joining a franchise or opportunity, compare them carefully before making a decision about which one is right for you. What are their goals? What kind of training will they provide? What kind of support will they give once the deal is done? How long have they been around? Are they financially stable? Are their products or services something that people have expressed interest in before? These are all important questions when considering which kinds of franchise opportunities will suit you.
It’s time to do some self-reflection! What appeals to you about opening a franchised business? Are you ready, willing and able to work long hours, including weekends and holidays (especially in the beginning)? Can you commit to following a pre-defined business model? Are you comfortable with the reputation of your business being largely dependent on the franchise’s network and not just you and your business? Are you financially stable and able to commit to investing your own money? Furthermore, do you have the finance to support you until the business starts making money?
6. Speak to Other Franchisees
The franchisor should provide you with the details of current franchisees to who you can speak before joining. Are they satisfied with the support that they have been offered? Is the reality of the business in line with the expectations (financially and otherwise) that they had before joining? Ask them all and any of the questions about franchise opportunities that you need to know before deciding on whether to join that company or not.
Once you have decided to join the franchise the next steps include:
Analysing the franchise agreement
A franchise agreement is a legally binding contract that stipulates in detail the responsibilities and expectations of the franchisor and franchisee. Before signing make sure that you read over the contract in detail and that If any verbal promises were made to you, make sure they are written into the agreement before you sign it.
Writing a business plan
You’ve agreed to the franchise terms and you’ve paid the joining fee now is the time for you to make a success of your business with the help of the franchisor. This stage is about organising all of your ideas and plans in one space so that it is broken down into achievable steps. Writing a business plan enables you to anticipate challenges and issues you will face during the start-up process.
Deciding to join a franchise is a huge career step and one that shouldn’t be taken lightly. Assess all of your franchise opportunities before joining one and make sure that you choose the right one for you; personally, financially and from a career point of view.
If you would like to read more about our BabyBallers franchise opportunities then click here.