When it comes to business opportunities, few topics are as divisive as franchising.
On one side of the fence there are people who have had highly negative experiences during their time in franchising who would warn you to sprint away faster than Usain Bolt from any opportunity, whilst there are groups of people who will happily speak at length about the riches they have gained in opening a franchised business and love franchising.
Here are some of our tips to ensure that franchising works for you:
- Ensure that there is a definite work\life balance in place as growing a franchise, just like any other business can be all-consuming.
- Do your relevant checks on any franchisor. There are countless blogs and forums out there who can discuss the merits of joining any business group, and in some cases, the franchisor themselves and their expectations on their franchises. This can be an invaluable source of any information.
- If things aren’t working for you, don’t hold on for ‘too long’. Planning your ‘getting out’ is just as important as ‘getting in’.
- Have a dedicated support team around you, with clear role definition. By sharing responsibility around your team, you can focus on strategies to grow the business and achieve that work\life balance.
- Be kind to every customer, even if it as lead for another location, word of mouth is important and they may speak about your target audience about an unpleasant experience.
- Spend some time in the business at another location beforehand to ensure that it is for you. Ask the franchise directly for their feedback on the pros and cons of the business.
- Don’t buy a franchise to ‘be your own boss’. Franchising models are based on conformity. Even when you have the best and freshest business development idea, head office is likely going to move slowly in implementing it, if they do at all!
- Have your finances in check, with backups for any contingencies. An example is that your brand-wrapped truck will need to be upgraded to new graphics with minimal notice.
- Be very wise in reading the franchising document, and seek legal opinions if necessary.
- Imagine failing, and put plans in place to overcome any of these possible issues.
Franchising can be very lucrative, and if managed correctly can be an ideal way to enter the world of business. There are literally hundreds of franchise opportunities in Australia, for both new and established presences.
If you’re looking for a quick and simple loan solution to get yourself set-up with some extra funds to tackle your franchise business development needs, chat to Unsecured Finance Australia about how we can support you with your business loan needs.