April 16, 2024

lgwinesmart-event

Studying business science

Everything You Need For Franchise Success

So you want to buy a business and are considering a franchise? Well, there’s a lot to think about – why is a franchise better than a stand alone business? Do you have what it takes to be a franchisee? How do you research a franchise opportunity? And how do you know what makes a good franchise opportunity?

To help you out, we’ve put together this summary guide to franchise success, which answers all the typical questions a potential franchisee would have when they are looking for a business for sale.

Why franchising beats going it alone
If you’re tossing up between buying a franchise and a stand alone business for sale, here are some reasons why you should go for the franchise:

The risk is much lower because the business model is proven, the products have succeeded in the market and the team knows what they are doing.
It’s much easier to get finance because franchisors either has existing relationships with banks or can help you arrange vendor finance
All the basics are already done for you like customer research, branding and product testing so you can jump straight in and start making money
You benefit from the experience and skills that the franchisor team has from years in the industry
You get full training and support from experts so you’re walking into the business with all the knowledge you need and have someone there to help you at all times
It doesn’t matter if you’re not a marketing expert, because your franchisor has a whole team of people to help you promote and grow your business
Because of all these factors, the rate of failure for new franchisees is far lower than that of stand alone businesses so overall, you’re far more likely to succeed with a franchise

Do you have what it takes to be a franchisee?
A big factor in the success of your business is you – your experience, your skills and your personality. Below are the 7 things you need to be a successful franchisee:

Passion for what you do
A positive attitude
Strong financial position
Basic business skills
Family support
Expert advice
Work ethic

Researching a franchise
Struggling to find the right franchise for you? Follow these steps and you will be able to make an informed franchise decision with a lot less stress and confusion.
1.Know yourself
2.Assess your financial situation
3.Conduct general research online
4.Find some franchises you like and find out more
5.Shortlist your favourites
6.Initiate contact with the ones you like
7.Choose the best and start the franchisee process
8.Do your due diligence
9.Arrange a formal interview to sign the franchise agreement
10.Become a franchisee!

What makes a good franchise opportunity?
You’ve narrowed down your list to a few favourites but how do you know if it’s the right franchise opportunity for you? Here’s some important factors you should look at when making your decision:

Well-known and respected brand that is established in the market
Experienced franchisor team that knows the industry back to front
Good location for your franchise that suits your market
Quality product that is researched and tested so you know it sells
Profitability potential so you can grow a successful business
Ongoing technical, business, sales and marketing support when you need it
Most importantly it needs to suit your budget, skills, personality and goals

There are lots of franchise businesses for sale in Australia at any time and they cover a variety of industries from coffee franchises to bookkeeping franchises, so use the above information as a guide to help you choose the right franchise for you.