How You Can Make Great Returns In A New Franchise Opportunity
5 quick tips for investing in new franchise opportunities.
1. Make sure you are passionate about the industry you choose.
While working your way through these steps keep coming back to this question as the confirmation that this industry lights your fire will keep you driven and ensure your success. Work out your own personal motivations in life and make sure they align with the franchise opportunities you are going to consider. If not, rethink the industry now!
There are so many exciting franchise opportunities available here in Australia, there will definitely be something out there that is perfect for you. Step 2 will help you to confirm your choices.
2. Make a checklist in order of importance of the deciding factors that must be satisfied that you will be using when selecting a business opportunity. These may include work hours available, family commitments, ability to travel, space you have at home, the level of income you need and want to generate, etc.
3. Start by looking at all franchise opportunities that are available to you within your selected industries. These need to be from reliable sources where the information is detailed, and it can be quickly and easily sorted against your checklist.
From experience the quickest way to get reliable information that is detailed enough to use in the initial screening process is directly from the franchisors/business owners themselves. They often have a package put together which outlines all areas of the business, including the cost, training, marketing, and ongoing support available. They will also be able to answer your questions and work out if their franchise is suited to you in one phone call. Speaking to the owners/managers first hand is perfect as they know what makes their business succeed and will be able to help you understand what it will take.
By the end of this step you should have a really good idea of two to three franchises that appeal to you, and most importantly, you can see yourself as the owner and manager of.
4. With the selected franchises from Step 2 and the information gathered from the franchisor, now is the time to seek out experienced advice. It typically will come from a consultant in the franchising sector, as they are familiar with the agreements and conditions needed for a successful franchise relationship. They will help to explain what you can expect from the agreements that you have, and the questions you should be asking the franchisor.
Even though this step may come with a small fee and take a little more time, it is completely worth it and will pay dividends when you secure a franchise business. It will also give you confidence in your choice of franchise and help you to fully understand how to maximise profits from their system.
5. Financing your franchise opportunity is something you have probably been thinking of from the start. It is a key player in the decision making process.
If you are passionate and driven about a particular franchise business, then some franchisors may be flexible in their terms and offer some financing support/payment program. Many franchises have preapprovals with the major banks so that potential franchisees are able to easily access funds.
It is worth exploring your options before pulling out due to a lack of funds.
Remember, it is in all parties best interests to help you to achieve great results with your new business. The franchisors will be striving for growth like yourself, and will be supporting you to achieve this. This is a definite advantage of the franchising systems.
by Heather Gleeson
Manager and National Licencee