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How To Start Your Own Franchise Business – Are you just tired of working for someone else? Too many hours or not enough financial reward? During COVID, many workers put in 60-70 hours a week and were rewarded with little pay. Others didn’t even get a pat on the back. Have you considered becoming a business owner as a new career? Now might be the right time for it. How will you make the most informed choice and ensure your likely success?
Diane Pleuss, MBA, an independent franchise consultant who helps people over 50, women returning to the workplace after raising children, veterans and even the busy and nervous, or just plain unsatisfied, discusses the right business. “No one comes to me and says I want to buy a franchise. Instead they say I want to learn more about my options and the franchise is solid. Opening a franchise is a solution for a person to achieve what they want, namely freedom, flexibility and financial security.
How To Start Your Own Franchise Business
There are so many misconceptions about franchise ownership and its costs and benefits. For example, Plus says, people immediately think of fast food places like McDonald’s, and this type of franchise requires a very large investment, costing more than a million dollars. But there are many other, cheaper options that can bring big profits and high returns with a small investment. “
Keys To Successful Franchise Business Creation
There’s an important difference people need to know, Plus advised. There is no direct correlation between what you invest and the dollars you earn. Anyone, regardless of your background, can excel in franchising. You don’t need industry experience because the franchise business structure allows you to get the training, business operations and marketing support you need to succeed. For example, you want to open a hair salon. You don’t cut or dye your hair. Instead, you’ll be running a business. You’ll hire employees, manage people, and possibly have a manager to handle day-to-day operations.
A FranNet study concluded that 92% of franchisees were still in business after two years and 85% after the first five years. Compare that to independent businesses, where Investopedia reports that 25% fail in the first year, 50% of the rest fail within five years, and only 30% stay in business for ten years.
Anyone looking to get off to a solid start should carefully consider the franchise option. You own the business, but you have all the support, training, technology and infrastructure to help you, so it’s not overwhelming and dramatically increases your chances of success. Does that sound interesting? Then it might be worth exploring franchise options. People from all walks of life run successful and profitable franchises.
Explore your skills, interests and define your goals. The key skills you need are leadership, management and communication strengths. Another important skill is to understand and be able to teach others vital customer service and business operations. What is your long-term goal? Ask yourself:
Why Buying A Franchise Is The Best Way To Start Your Own Business? By Ucmas Canada
Want to grow your business and sell it fast? Do you want to preserve it and build wealth for generations and eventually pass it down to your family?
There are so many options to choose from and not all franchise options are the same. You need expert advice before investing money. Ask franchise business owners for referrals. You can Google “Franchise Consult” to carefully review the person’s qualifications and talk to several before choosing the person to help you through this difficult decision-making process. One place to find 80 consultants with extensive experience is to look for FranChoice, which has a process. Note that the consultant’s services are free to you. This advisor can teach you about many different business options that you may not have known about.
Typically, your consultant will help you narrow down your business options to three. You should then carefully research each option by comparing and contrasting the differences between these three potential businesses. At this stage, you will be introduced to the franchise company. You will learn everything about the business and its work directly from them. You will talk to the owners and get answers to your questions. You will also learn about support, financial investments and potential returns. There is always an ongoing fee that is part of the ownership requirement of this business, so you will be told what it is and what value you will receive in return. Often, when researching options, it’s a process of elimination that can determine your final choice.
There are many options, but the most common franchise investment is $50,000 – $65,000, which is a one-time fee. It can be from $15,000 or over $100,000 depending on the type of business you want. You will also have marketing and advertising costs. You will need training, which is included in the fee, but you must cover all travel, accommodation and food yourself. If you rent a storefront, you are responsible for construction, signage and rent. Any office space you occupy is also at your expense. You also pay the costs of ongoing business operations.
Reasons To Make Your Business A Franchise
Many people have found the financial freedom they wanted by owning a franchise. This may be the best option for your career and should be considered. Opening your own franchise business is a big step for those choosing to go into business, and it can be somewhat daunting.
The infographic below gives anyone embarking on the challenge and adventure that comes with opening a franchise business a step-by-step overview of the key stages. Please note that the investment process has some variation from company to company and the timeline is different for each franchisee.
1. Self-Assessment: What will you like about opening a franchise business? Are you ready, willing and able to work long hours, including weekends and holidays (especially in the beginning)? Can you commit to following predetermined business methods with little or no variation? Can you get a portion of your profit paid to another person (franchisor)? Are you satisfied with your business reputation, relying heavily on the franchise network and not just your business unit?
Also, how much of your personal money will you use to start the business? If you are not lucky enough to have enough money personally, will you be able to secure a loan?
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2. Choose a franchise consultant to help you (optional): Despite all the information available online, it’s still a good idea to hire a franchise consultant to help you through the process.
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Just as a real estate agent is a good ally when buying a home, a franchise consultant has industry-specific knowledge and can help you understand potentially complex topics (including aspects of franchise agreements and disclosure documents). A franchise consultant can also prevent problems that might arise without their expertise.
3. Research: What types of businesses can your region support? Is this the type of business you want to open? Federal and state governments provide free access to statistical and other data. Use the information gathered to match your personal situation and the business environment in your area with the right franchise system. Your common sense and intuition can also help you determine what types of businesses can be sustainable in your area.
Once you’ve narrowed down your search to a few strong candidates, request a franchise application from those franchisees. Once a franchise has decided that you may be a good fit for their system, they will send you a copy of the Franchise Disclosure Document (FDD). FDD will go deeper into their business system.
4. Attend an “Opening Day”: An opening day is an in-depth meeting between the franchisor and one or more potential franchisees. This can happen at a local franchise location, but is more likely to happen at the company’s corporate office.
Starting A Business Vs. Buying A Franchise: How To Tell Which Is Right For You
Often, franchisees in attendance see presentations about what the franchisor can offer in terms of support and can ask questions. If done at the corporate office, there is often a tour of the various departments and an introduction to the franchisee’s training and support staff.
5. Talk to other franchisees: The FDD provided by the franchisor contains a list of all current franchisees in their system. Find a few near you and visit them. Are they satisfied with the franchisor’s support? Does the reality of the business meet previous expectations (financially and otherwise)? There is no better teacher than anyone else
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