As the pandemic continued to affect so many lives, many people have started thinking of starting their businesses. Some felt that they could no longer just wait for the call to allow them to come back to their jobs as some enterprises have begun reducing the number of employees. These individuals would not just wait for something to happen for them. Similarly, some may have second thoughts about returning to the corporate world. The pandemic has forced people to work from home, which has ignited the idea of building a business.
Starting any kind of business entails a lot of risks. Apart from the usual challenges that entrepreneurs come across, small business owners now need to be extra cautious to ensure the safety of everyone in the workplace. And to lessen the stress brought about by starting a business from scratch, joining a franchise brand may just be the answer. When business owners are part of a successful franchise system, the franchisor is there to provide their support. Aligning with a proven brand can help prospective franchisees through the following: marketing, support, access to specific resources, and leadership.
The main concern of every individual is to provide for the family. And to those who somehow can start their own business, choosing a franchise business can be a good option. However, the big question is: what should an aspiring franchisee need to consider when starting a franchise business?
I have always mentioned that even if you think there is a need to start your own business, you cannot jump right into the thought without thoroughly understanding what you are getting into yourself. Therefore, this article should help you start your entrepreneurship journey by creating a franchise business.
1. Focus on what you think interests you the most. I always advise my mentees to start with a business close to their heart. Although some have said they have just slowly learned to love what they do genuinely, I think the best way to start any business is to honestly know in your core that you will be 100% involved in the industry. For example, if you are a pet lover, you may want to try franchising a successful pet care service brand. Attractive pets will make you more enthusiastic about pushing yourself to make the business successful. An advantage, of course, is that somehow, you know how to take care of these animals, and it would not be hard for you to adjust to handling the business once the business starts.
2. Know the people behind the brand of your choice. The getting-to-know-each-other phase is essential if you want to be part of an established brand. However, it is not enough to just know that the brand is successful. You also need to ensure their values and objectives meet your standards. Remember, buying the right to franchise a business does not only mean buying the name and the brand. But as well as also procedures and standards perfected by the franchisor. Get to meet the people in the organization and how they do business. In doing so, you will be able to determine if your vision of owning the company aligns with the vision and goals of the business.
3. Scout on the location. Every franchisor would want their business to be visible in any area. Therefore, choosing a busy place is always the ideal one. However, you need to ensure from the franchisor that the location you are eyeing is still available for you. since it could be possible that another franchisee might have established his own business ahead of you. Choose a location within the community you reside. Franchisors have criteria that you may need to ask. Understand the area you are eyeing is where you will conduct and manage your business.
4. Assess your resources. The capital you need to start a business varies. The same goes when you opt to start a franchise business. Two critical financial figures are the franchise fee and the ongoing royalty. The franchise fee varies between industries and competitors. Royalty fees can be a fixed rate or percentage rate, collected weekly or monthly. The expenses do not end there. You must also consider the startup cost, including construction, equipment, branding, staffing, rental fee, utilities, etc. If you feel overwhelmed with the amount it would cost you, consider trying another brand.
5. Seek legal advice. Having a lawyer check the contract before signing is always best. It ensures that you are fully aware of everything written, and you can ask for clarification on specific details you don’t fully understand. Always make it a habit to read the content entirely, knowing what you are involvement.
Hopefully, these tips have made you feel more confident about whether a franchise business is for you.
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
