Franchise Advice
in a recent survey reporting optimism for trading conditions. Given these findings, it’s easy to see why franchising is an attractive option for anyone wanting to start their own business but not really sure what to do or how to do it.
U For many people, their dream is to start
their own business and become the master of their destiny. That’s where franchising can fit in very well. Here are 10 good reasons to choose franchising rather than starting a business from scratch…
1. Track record of success Any good franchise company has developed a method of doing business that works well and produces successful results. Even better, an ethical franchisor will provide you with a great deal of information, so you can do your due diligence and verify what they’re saying with existing franchisees prior to making your final decision.
2. Strong brand One of the biggest advantages of franchising is that the company is building a brand on a regional or national basis that should have value in the eyes of customers you’re trying to attract.
3. Training programmes A good franchisor has training programmes designed to deliver the most successful methods to run the business. They should also have reference materials to assist you in dealing with whatever comes up while you’re running your business.
4. Ongoing operational support Franchisors have staff dedicated to providing
K franchisors and franchisees continue to be confident about the future, with nine out of 10 franchisors
ongoing support to franchisees. You’re not alone when you’re building and running your business, and you can always call on experienced people when you hit a rough spot or want to share new ideas for growing the franchise.
5. Marketing assistance The franchisor has developed marketing collateral to provide you with proven tools and strategies for attracting and retaining customers. They’ll also work with you to develop a specific marketing plan and budget for your opening launch, as well as your ongoing local marketing.
6. Property assistance Most franchisors have profiles, landlord presentations and other documentation, as well as staff, to help you find the right site and negotiate the best possible deal. This is a very important advantage that can keep costs down and provide the best possible chance of success in any property-driven business.
7. Vehicles, fit out and equipment assistance The franchisor knows exactly what vehicle you’ll need and will have negotiated deals with suppliers to keep the costs down. Franchisors will also provide help in designing the layout of the business and selecting the right contractors to do your build out. They’ll also make sure you get the exact mix of furniture and equipment you need to maximise the efficiency of your initial investment.
8. Purchasing power A good franchisor will take advantage of the buying power of the entire system to negotiate prices for everything you need at significantly lower levels than you could achieve as an independent operator. This applies not only to initial furniture and equipment purchases, but also to the supplies, stock, uniforms and
everything else you’ll need on an ongoing basis.
9. Benefit from the franchisor’s mistakes When the franchisor set up the business you can be sure they made mistakes – plenty of them and they were expensive. You get the benefit of not making the same mistakes, at least if you follow the system. You’ll also grow faster than if you were to start your own business, as you’ll hit the ground running with a marketing plan that’s been tried and tested already.
10. Risk minimisation The biggest reason to buy a franchise is that, if you’re smart, it will help you avoid much of the risk of starting a new business. Don’t misunderstand – you have to do your due diligence, but if you do, you can determine with a fair amount of certainty what will happen if you become a new franchisee.
This list not only shows a number of reasons
to think about investing in a franchise, it also shows you some of the major challenges you’ll face if you have to create all these things yourself in an independent business. You do have to pay fees in a franchise that
you could avoid in an independent business, but using a franchise to meet your goal of starting a new business is a wonderful approach for most people for all these reasons and many more. n
Euan Fraser founded AMO Consulting in 2000. The company specialises in advising businesses on how to start up a franchise, how to grow their franchise network and, when the time comes, how to franchise internationally.
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