Back The Right Horse – Deciding What Franchise Works For You
And they’re off! Horse racing season has begun, and we think it’s a perfect time for budding franchise business owners to start the process of deciding what organisation best suits them.
While most individuals hear about franchising through the industry they want to break into, there are those who are attracted to the idea of a franchise itself and will try to weigh up the merits of each.
That’s why we thought it would be useful to provide a guide on the considerations to make when choosing a franchise.
Stick to your skills
What you’re physically (and mentally) capable of should help narrow your search. If you aren’t the most confident with numbers, you may want to avoid an accounting franchise business, for example.
Play to your strengths first, and consider what you think you can learn second. While some franchises offer training to get you qualified for the role, having a prior talent in that area – or at least transferrable skills – is preferred.
Take specialist cleaning and restoration: you may never have used leak detection equipment before, but if you’ve worked in marketing or have an intimate knowledge of business processes, this can compensate for your lack of experience. You are therefore still capable of growing your commercial enterprise.
Don’t overstretch yourself financially
Once you’ve compiled a list of franchise businesses that you’re confident you could succeed in, determine their required levels of investment. Depending on the franchise, this can range from a small sum (to purchase equipment for example) to a bank loan (so you can secure a unit).
Consult with your family on this one. Don’t borrow more than you can afford and be conscious of your current lifestyle. Some banks will offer generous loans to franchising prospects. However, before you begin speaking to any specialist, research what the typical returns are for that franchise.
Ask what it will generate for you. Then quiz the franchisor on what those figures are based on and whether there is historical trading data of existing outlets you can review. Be thorough: all franchises want you to succeed, but that doesn’t mean they will suit you financially.
Do your homework
Continuing with the theme of research, get to know your market. Don’t jump at the chance to join a doggy day care franchise just because you’re a capable businessperson – actually take the time to look at your desired territory and weigh up whether you think there’s an untapped market.
Most franchises will have this information to hand when they consider your application anyway, but it’s a good way to recognise target audiences and the strength of your business proposition in the area. Speak to individuals in that sector and its online community to get a clear picture of the direction you want to take your franchise business in and how your approach is unique.
Seek professional advice
Contacting and taking advice from prominent figures in the franchising world is one of the best ways to determine the franchisor you want to work with. The British Franchise Association (BFA) has a list of accredited professional advisors that can guide you once you’ve got a handful of possible choices.
Choosing franchise opportunities based on BFA membership doesn’t guarantee that you’ll be more successful in business, but it does mean that your choice has been assessed against a code of ethical franchising. In addition to this, speak to your accountant to firm up how you can adapt to this venture.
Interested in talking to a franchise leader about opportunities in specialist cleaning and restoration? Speak to us or request a callback! At Rainbow, we pride ourselves on providing everything you need to flourish in our ranks. We don’t require a unit and can point you in the direction of a number of lenders who can help you secure a franchise for sale.