Festive franchising - 12 days of Christmas...
As Christmas approaches and the year draws to a close, it’s both a time for reflection and looking to the future. If...
The summer sun is sadly behind us, and October brings with it darker nights, colder weather and, of course – Halloween! With this spooky holiday in mind, we thought we’d look at the top fears of potential franchise investors, and why they needn’t be so scared after all! While there is arguably a trick to picking the right type of franchise, there are many treats to be had in the form of big returns!
So here are some of the top fears that can hold people back from embarking on an exciting new franchise opportunity, and reaping the many rewards.
Naturally, the main concern for people thinking about investing in a franchise is simply what they will ultimately get back from their investment. People want to feel confident that their money, as well as their time, is being spent wisely and will yield a long and prosperous future. For a large number of franchisees, the initial investment is not something they can afford to lose or an amount they could simply earn again.
The good news is that, while you should always plan for how you might recover financially if an investment doesn’t pan out as you’d hoped, investing in a reputable franchise is far less risky than starting your own business. Rather than having to start from scratch, you will be able to use an existing brand that has already gone through all the trials and tribulations inherent in building a business and reputation from the ground up. You can use an established company name and visual identify, and also benefit from any national or local advertising from the franchisor - a considerable outgoing cost that many small business would struggle to afford.
Most new start businesses tend to fail within their first year, but with a franchise, you can feel confident in simply following the organisation’s tried and tested procedures and guidelines, and utilizing standardised systems. Furthermore, you can also look forward to reaping the benefits of ongoing research and development, as well as new products and promotions.
Although there are risks with any new business venture, franchises offer far more security than starting out on your own. By becoming part of a proven model, you can hit the ground running and start seeing a healthy return early on.
Many of the people who consider investing in a franchise are actually looking for something different, perhaps a business opportunity that is closer to their interests that it is their practical experience. As such, a lot of potential investors are scared that they are lacking the key skills and experience that will be necessary to make their new business a success.
While it’s obviously an advantageous if you’re investing in a sector with which you have some experience or understanding, many of the most important ingredients to long term success are fundamental skills that transcend industries. If you are hard working, passionate, resilient, goal-orientated, and know how to surround yourself with the right people, you can succeed in any industry, and the rest you can learn!
And what’s more, the majority of franchises will provide you with comprehensive training to help you do just that. At the end of the day, they want you to succeed too. Be sure to do your homework and put your mind at rest by finding out exactly what is offered in terms of ongoing support and resources.
If you need further reassurance, why not try shadowing another franchisee business owner for a few days to see how you feel about the work and whether it fits with your core skills.
If there are already 15 different nurseries or fitness franchises in your local area, then a new business in one of those sectors will probably struggle to succeed no matter well tested the business model might be, or how much training and support is offered by the franchisor. Over saturation of the market is therefore are very understandable fear for potential franchisees, but it is also one easily overcome simply by doing the right type of research. Be sure to investigate business in the area that are offering comparable services – find out not only how many there are, but how long they’ve been around, if they are succeeding, and if there are any opportunities for differentiation with your chosen franchise’s product or pricing.
If you find that the last thing your home town or city needs is another after-school club, estate agency, or print franchise, it might be time to consider a different sector. If, on the other hand, you’ve chosen the industry because of your skills and experience, or because it’s an industry you’ve always wanted to be part of, you may need to think about relocating. Just be sure to choose the new location after the same type of detailed research into the market place.
Any new business venture has its risks, but investing into a franchise doesn’t have to be scary. So overcome your fears this Halloween, and have al look at some of the fantastic franchise opportunities we have available right now..