Starting a franchise business may seem like a better option than opening your own company from the ground up, but it also entails a lot of responsibility. Starting a franchise includes some unique challenges that need to be overcome in order to maintain lucrative profit and establish longevity. How does one start a franchise? Here are five tips on how to begin.
- Take time to research the franchising market
Every new franchiser has to spend time researching trends to find a suitable company to invest in. You can check franchise business models of varying sizes to ensure that you choose one that fits your interest and budget. The British Franchise Association also holds events such as the National Franchise Exhibition. Participating in these events can help get you to get oriented with other franchisers that can widen your network. You can learn from the experiences of other franchise owners and validate whether starting your own franchise is the right business move.
- Learn more about the franchise companies you are interested in
You should have a list of the top companies you are interested to invest in. Franchisors meet with potential franchisers so that they can experience the company culture, learn more about the brand and meet other people involved in the business. Be prepared to ask questions pertaining to the franchise agreement such as how much support and training the franchisor provides to each franchise owner.
- Choose and secure your franchise location
Once you have met with franchisors and have zeroed in on your choice of company, the next step is to find a location and secure the lease. Location is essential for the success of any business. The amount of foot traffic your intended location gets on a daily basis is a primary factor for the ultimate success of your business.
- Get the needed funding
Before you can secure funding, you need to have a well-prepared business plan. Banks need to look at your plan to see if your business is viable. If you need help with preparing a business plan, seek the assistance of an expert. There are some banks that specialise in funding new franchises and they can give additional advice on the best funding for you.
- Learn from experienced franchise experts
The last essential step before you begin your franchise operation is to speak with a solicitor who specialises in franchises. You need to learn what you are liable for and the extent to which you can protect yourself. Have the franchise agreement checked and make sure that it meets all the guidelines set by the British Franchise Association.
Ample preparation is key to make sure that you have covered all issues. Before jumping on the franchise bandwagon, you have to look at all the angles and consider the challenges that may come as soon as you start operations. Nonetheless, these difficulties should not be impossible to overcome if you have done your research, gained knowledge and insights from experts, and have the right support system to guide you every step of the way.