How to get the most out of your Franchise Opportunities research
James Brouillard | Managing Director | 10 THOUSAND FEET
"When it comes to finding a franchising business it seems the more you look the more you find. But how do you know what franchising business is right for you? More importantly, will it live up to your expectations now and in the future?
Because a franchise system works on a specific formula of policies and procedures it may be more appropriate to ask can I live up to their expectations? Am I willing to give up a certain degree of independence to achieve the benefits and acceleration of a new business that a franchised group's brand can offer? Every franchising business will have varying degrees of how much self expression you can add, but if a franchising business is going to be successful, it needs to deliver a consistent message and experience to its customers. This requires cooperation and teamwork from all its franchisees and compliance to its mandatory standards.
Over the years I have spoken to thousands of potential franchisees and what is most surprising is that many have taken a cherry picking approach to their enquiries. When asked if they have systematically narrowed down their choices most will honestly admit they have not. With the vast amount of franchise systems currently operating in Australia you would be ready to retire by the time you did due diligence on all of them. There must be a game plan.
You need to start by putting your motivation to go into business at the forefront. Are you looking for an investment or a lifestyle? What are you hoping to achieve having your own franchising business?
Do you want to work actively in the business or plan to put it under management? Though early in the process, do you have plans to own more then one outlet?
How will owning a franchising business affect your current and future lifestyle and that of your family?
Do you have sufficient funds and equity that not only covers all establishment costs, but a sufficient amount of working capital to get you through at least the first year of trade?
These are just a few of the many questions you must ask yourself and have answers to. It is more than certain that the franchisor will be asking you these questions during their evaluation period.
The first piece of advice I give to prospective franchisees that have not done their homework is don't ask yourself what you would love to do, but ask yourself what you would not want to do! This will allow the elimination of a number of unappealing franchising business types while keeping the doors open to discover options yet to be explored. You should also be realistic and honest with yourself about your skills and personality as these will impact on the type of franchising business that will suit you and further zero in on your best prospects.
No matter what type of franchising business you are considering, you must be aware of the level of dedication, time and uncertainty that will be involved, particularly in the first few years. This is why it is so important to be honest with yourself during the franchise assessment and rely on your past history as a guide. If you want a franchise bad enough there is a good chance you will say and do what the franchisor is looking for during the interview process. To do so would only be fooling yourself, if in the long run, you were not totally committed to the culture and operations of that franchising business.
There are a number of books, magazines, websites and advisory centres that can help with your research. As you are now on the Topfranchise.com.au website, I would suggest you grab a pad and pen and outline at least the fundamental questions above then start exploring all the exciting opportunities Australian franchising has to offer. But remember, being true to and realistic about your goals, expectations, skill sets and personality type are paramount."
topfranchise.com.au is a great place to start your franchise research. To find out which franchising business rates the best in the area that is the most important to you, refer to Top 10 franchise systems in Different Categories section of the website.