So you’re looking to start up and run your own business. That’s great.
Now, have you thought about buying into a franchise?
I’ve been working with franchisees for years, and it still amazes me how many businesses out there operate under the franchise model. Australians are some of the biggest users of the franchise model to start up and run a business. And there are more than 1500 franchise brands throughout the country.
So why are they so popular?
Safety. Potential business owners feel safer jumping into the business world through a franchise relationship. Starting a business can be very daunting , so buying into a franchise gives them a sense of comfort. It’s an established business, often with a tried and tested business model.
Branding. One advantage of opening a franchise is the established brand. It means that, from a positioning and marketing perspective, a lot of the hard work has already been done. Branding and marketing can be very daunting for new business owners, so it’s good to have an established and successful brand.
Processes and systems. The key to a good franchise is having systems and processes in place to help you run the business successfully—production, staff recruitment, marketing, pricing, ordering, etc. It’s the best way for a business to be successful and scalable.
Comfort. It’s comforting to have other franchisees in your group or brand and know you’re not alone. Franchisees are often encouraged to get together regularly to discuss ideas and get help with issues they’re facing. For people who’ve never run a business before, this can be very valuable.
Variety. With more than 1500 franchise brands, there’s one to suit just about everybody. From food to finance, personal fitness to gardening, there’s a plethora of options out there. And for those franchisees who find one and make it a success, they can open more than one store and become a multi-franchisee.
Numbers. As a Business Advisor, I spend a lot of time with my clients working on the numbers. And in a franchisor-franchisee relationship, it’s even more important. So many franchisors have set guidelines on what their business should look like, and what the key numbers should (or shouldn’t) be, and so on. This tells new franchisees whether or not their business is on track towards success.
Franchisees can also enjoy other benefits—bulk buying price advantages, help with site selection and setting up your business premises, financing, exclusive rights to an area, etc.
But keep in mind that each franchise is different, and what suits one person may not suit another. And while some are good, others may be less proven. So you need to do your homework.
But above all, remember a franchise is like any other business: you need to work at it. Just because you’ve bought into a franchise doesn’t guarantee success. To make your franchise a success you need to apply the same business skills you’d apply to any other business.
If you’re new to owning and running a business, a franchise is a great way to start. And who knows? Maybe one day you’ll be signing people up to become part of your franchise.