Is franchising for you?
Should you run a franchise business?
All things you must know before you decide to get involved in a franchise business.
Franchising – Business Culture within Everyone’s Reach
Businesses, small and large, are what make economies tick. Without businesses, there’s no impetus for development or growth, and without growth, we lose much of the meaning in our lives. Running a business, however, has long been thought to be a prerogative of the select few, particularly because of the resources it takes to set up a business.
That, fortunately, has changed in recent times. The economy, the markets and the overall financial environment are more conducive to entrepreneurship than ever. Much the reason why, we have seen an unprecedented number of businesses being registered in the UK over the past few years. Encouraging as it may be, this doesn’t alter much the fact that running a business – and running it with success – is a tough ask if you aren’t experienced, have limited resources at your disposal and aren’t exposed to suitable market opportunities.
This is where franchising can be of immense help. Franchising works by allowing smaller businesses to benefit from proven strategies and brand names of established businesses. Statistics reveal that approximately 50% of the financially independent adults in the UK are interested in owning and running a business, but don’t really know how to go about it. As things stood in 2017, over 44,000 franchise businesses were in operation across the UK, employing more than 600,000 people. So, quite clearly, franchise businesses have a lot to offer. (If you aren’t familiar with the idea of franchising, our What is Franchising page is a good place for you to start.)
Statistics Source – Proactive Marketing
But is franchising the right choice for you? Can franchising help you achieve what you are after? Can you rely on a franchise business to earn you sustainable income? What things must you know before you decide to dive into the world of franchise businesses?
Let’s find out!
Do You Have What It Takes to Make a Business Work?
Even though this question may seem to raise even more questions than answers, it’s quite important to have an answer ready. Franchise businesses enjoy some of the lowest failure rates across the board – but that hardly implies that anyone can run a successful franchise.
As is the case with any business, a certain combination of personality traits is required for running a franchise. For starters, you can ask yourself the following questions. If your answers tend more to be towards the ‘yes’ side of things, you can treat it as a good start!
Are You a Motivated Person?
This may sound trivial, but it’s more important than it appears. Having the motivation to keep your business – because that’s what a franchise essentially is – growing every single day is an invaluable asset to have.
Do You Have the Discipline?
Make no mistake – being your own boss may sound tempting, but it’s not without its responsibilities. As a franchise owner, you will be required to handle several tasks and cover numerous bases all by yourself, quite often at the same time. You may even have to handle the responsibility of employing others. It will take immense discipline on your part to see the matters through to the end.
Are You a Good Learner?
Do you feel excited about learning – even through failures? Successful business-owners have one thing in common – they all tend to learn quickly. If you think you have that in you, franchising may just be the best way to kick-start your career in business.
Are You a Good Leader?
Can you build a team of employees that will work just as hard as you do to make your franchise a success story? It’s fair to say that leadership skills are difficult to ‘acquire’, but it’s equally important to realise that you, at all times, will be responsible for the fate of your franchise. So, if you are a good leader who assumes, carries and enjoys this responsibility, things may just work in your favour.
Do You Have Business-Specific Experience?
This can be a difficult question to answer if you aren’t quite familiar with the business and the market. The very idea of franchising is to enable individuals to get started with their business and gain experience along the way. Therefore, it’s not always absolutely necessary to have prior experience in running businesses before you start operating a franchise. It, however, certainly helps to work in an industry that you may already – at least superficially – be familiar with.
For example, if you have previously worked in a food business, you will have a head-start running a food franchise.
Can Franchising Help You Achieve What You Are After?
Again, it’s a subjective question that has no incorrect answers.
So, to keep things simpler, we will focus on two goals that most people would place at the top of their lists: financial freedom and career satisfaction. In other words, earning enough money, and enjoying the process.
Arguably, this factor will influence your decision the most. If you want to go ahead with a franchise business, it’s important to know that you have adequate capital to do so, and you can safely expose that capital to market risks. It’s also important to know that franchise businesses – like any other business – do take their time to well-and-truly earn you money. You also need to make sure that you have enough money to see through lean periods.
- Franchise businesses can take a year or two before they are profitable.
- Certain business sectors, particularly the ones with high competition, offer consistent returns in the longer run.
This, however intangible, is an important metric. It may sound cliched, but if you aren’t passionate about your franchise business, you will find it difficult to make it successful. Conversely, it can be argued that you should pick a franchise that you know you will enjoy running.
- Running a franchise part-time isn’t always feasible – even it may initially appear so.
- Stress and unpredictable workload are inevitable when you run your own business. Therefore, you need to be certain that you are up to these tasks before you make up your mind about buying a franchise.
Many people start with franchise businesses as a ‘plan B’ – something to fall back on. Whether this will work for you or not will depend largely on your other commitments and the type of franchise you choose. All things considered, the importance of choosing the correct franchise opportunity cannot be overemphasized.
Points Every Would-Be Franchisee Must Note
Running a franchise business can affect many important aspects of your life. Being aware of these effects often leads to more intelligent decision making. Some of these aspects are:
- Time management
- Work and home balance
- Physical and mental health
- Social life
- Your finances
Thinking Things Through
Buying a franchise business can well turn out to be one of the most important decisions of your life. So, it’s quite important that you make a thoughtful, well-informed move. We also recommend you weigh the Pros and Cons of Running a Franchise to help put things in perspective.
If you’ve decided that you’re in a great position to make the most of franchise opportunities, our How to Choose a Franchise guide will help you narrow your options down.