and you feel you have the necessary requirements to set up and operate
your own business. Now for the hard part! Perhaps one of the most vital
aspects in the franchise process is deciding what franchise system you
want to become part of. The following points should give you some basic
points to help you choose the perfect franchise partner for you.
1. Define Your Search
The
first step in searching for the right franchise opportunity is to
research the franchise industry from top to bottom. Considering there
are over 1500 franchise opportunities from which you can choose from,
this can be the most difficult step. However, if you narrow your search
by assessing your personal interests according to the requirements of a
particular franchise system, then you are sure to find the right
franchise partner for you.
You would be surprised how many people
choose a franchise for its estimated financial earnings, rather than if
it interests them on a personal level. You are more likely to succeed
as a franchisee if the franchise relates to your personal interests.
2. Search Relevant Franchise Sources
After
narrowing your research to a particular franchise category, it is now
necessary for you to research this industry in a methodical fashion.
You must research this industry and be informed of every element
relating to this specific industry, form location, training, costs and
financial obligations to staffing, HR, and media and PR campaigns. In
order for your research to be effective, the following list of
websites, directories, magazines and exhibitions is provided.
- Franchise Websites
- Franchise Magazines and Newspapers
- Franchise Exhibitions, Seminars and Conferences
There
are thousands of websites dedicated to providing you with information
relating to the Franchise industry, which will provide you with the
most relevant information relating to your area of interest. Simply
typing the word "pizza franchises" into Google or Yahoo will reveal the
top results for your franchise sector. However, the following websites
are worth singling out: International Franchise Association (IFA)and
Franchise Direct.
Subscribe
to relevant business and franchise magazines that are available in
retail or on-line. Also regularly read the Financial Times for their
business supplement or other relevant newspapers for their business
sections. Most magazines available on-line are free:
http://www.businessfranchise.com (Business Magazine)
http://www.entrepreneur.com (Entrepreneur Magazine)
http://www.franchisetimes.com (Franchise Times Magazine)
Attending
a franchise exhibition in your local area can be a great way of meeting
potential franchisors and finding out key information relating to your
franchise area of interest. To find out when the next exhibition is
scheduled for your area, contact either the International Franchise
Association or Franchise Direct Information Center for a list of
relevant exhibitions, dates and times for 2007/2008.
3. How relevant is your previous work experience?
Your
past work experience is key in helping you choose the right franchise
partner or franchise opportunity. For example if you held a position as
a manager in a retail store for a number of year's, then not only do
you have the necessary business and/or management skills to operate a
business venture on your own, but you should also consider buying into
the retail franchise industry. Similarly if you are a stay-at-home mom
or dad, then you might consider a part-time franchise opportunity
working from home. It is essential you utilize past skills to help you
succeed in the long term.
4. Assess Your Financial Costs and Budget Accordingly
Perhaps
one of the most monotonous or arduous tasks is calculating your budget
costs for buying into a franchise opportunity. If this seems a daunting
task, the best advice would be to consult a financial advisor within an
institution such as your local bank, and ask them to draw up a
budgetary plan for your business venture.
Finally, do you have what it takes?
Attitude
Attitude
is defined here as a positive connotation for a consistent and
pro-active approach to being in business for yourself. This means that
you have a positive outlook and the necessary skills to succeed. Do you
have the right "attitude"?
Capital
Before any
interview with a potential franchise partner you must be certain you
have the required capital in place before the interview even starts! A
franchisor will expect an initial fee to be paid on signing a contract,
and this is generally calculated as 10% of the franchisee's start up
costs. Make sure you have a legal or financial expert analyze all fees
and accounts before signing a franchise agreement.
All Round Skills
What
skills and experience can you bring to the franchise agreement or
opportunity? Be aware of your personal and professional skills such as
leadership, organizational qualities, communication skills and
managerial skills. Other abilities include time management,
reliability, efficiency, motivational qualities.
To sum up, the
above points should guide you in the right direction in deciding what
franchise opportunity is right for you. However, it is certainly not an
exhaustive list by any means! Here are some bullet points for where you
should be after choosing a franchise opportunity.
You must read as much information as you can about franchising and the
franchise industry before deciding to enter into a franchise agreement.
You will have attended franchise seminars and exhibitions, and talked
to franchise experts and consultants and other franchisees to gain
valuable insights into the franchise industry you are interested in.- You will have worked out your net worth and assessed your liquid assets.
- You
will have a meticulous idea of where you to go, where you want to buy
into and some target companies you are interested in targeting further.
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