Think about what you really want
Before you invest in any business or
franchise, it is absolutely crucial that you take some time out to stop and
really think about where you are at in your life and what’s driving
you to make this decision.
Ask
yourself, why is it that now the time has come for you to invest in a
franchise? What is motivating you to take this step and branch out? Maybe you
have kids who you want to inspire and leave a legacy for? Maybe it’s that you
really want more flexibility and time to enjoy doing the things you love? Maybe
you want a more luxurious lifestyle and a greater financial income?
Really
thinking about what you want and understanding what’s important to you, is the
best way to discover what it is that’s driving you to do this.
Assess your finances
How much money do you have to invest, and
how much do you need to get back from your
investment? This may seem like a logical question, but it is vital you fully
understand what your circumstances are and how much you need to take out of the
business to fulfill your current lifestyle.
Franchise opportunities vary greatly and come in all sizes of investment levels; from
small amounts you may have saved up already, to considerably larger amounts
that may require a business loan.
You
need to assess and decide from the beginning how much you have to invest in the
franchise, and how much you are prepared to borrow. This will narrow your
search and also avoid you setting your heart on something which is simply not
realistic for you. Look at the business you are investing in and find out what
sort of return on investment (ROI) you will be getting. Ask to see proof of
this from historical accounts compiled from other franchise owners and evaluate
whether this sort of return will not only provide enough for you and your
current lifestyle, but whether it can also grow to your desired
salary in the future.
There
is no point putting £10k into a franchise if you’re only going to get out £15k
at the other end. If you need £35k + a year you may have to
consider saving to invest in a larger franchise which can give you the return
you need.
Choose the right business for you
Deciding what sort of business you want is
crucial when looking into franchising.
When
you start looking at all the franchises out there, trying to work out which
franchise is right for you can seem like an overwhelming and daunting
process.
I
would highly recommend that you start by digging deep and asking yourself what
you are really passionate about, what is your drive and what would make you get
up with a spring in your step each morning? If you love kids, find a franchise
which allows you to work with them. If you love being healthy and working out,
look into fitness franchises. If you have a real passion for food then catering
franchises would be where you want to begin your search. Our working lives take
up a lot of our time here and I know its cliché, but life is short. You HAVE to
do something you love.
Furthermore,
it’s also important to think about what your main duties and responsibilities
would be within that franchise – and whether or not they match the skills sets
you have developed in your current career over the years. Having a genuine
interest in and enjoyment of what you do is the key to making any franchise
successful, so choose the right business for you.
Make sure the franchise is BFA accredited
Find out whether the franchises you are
researching are members of the British Franchise Association (BFA)
This
is by no means a guarantee of business success, but it does ensure that the
franchisors have been independently measured using established criteria against
an ethical code of franchising.
Many
franchisors do not reach the standards set by the BFA and only those that pass
can become members.
Do your research
Once you’ve decided what sort of franchise
is going to be right for you and suit your interests and skill set – do your
research.
Find
two or three franchises which meet your selection criteria and contact them.
Make sure that the investment levels required match your budget, and that the
business model will give you a valid return on what you need for your
lifestyle. If you need to live on a minimum of £25k a year to support your
family – there is no point investing in something that is going to return you a
maximum £20k a year.
Get
advice and opinions from family and friends, do market research into the
products and services that you are interested in. We are in the information age
where everything we want to know is readily available: read franchise magazines,
attend exhibitions, visit websites and read material from your shortlisted
franchises. Know what you’re investing in.
Go to Discovery Days
What do you have to lose?
This
is your opportunity to find out all about the franchise you are interested in.
Discover the business models, the systems and processes which make the
franchise a success. You have the opportunity to talk to knowledgeable and
experienced business minded franchisors to ask any questions and find out all
the nitty gritty details.
The
discovery days for any franchise are great because they put you under no
obligation, and are there for YOU (the interested applicant) to assess THEM (the
franchisors). Ask questions and find out what the business models and systems
are like. Are you limited to the amount you can take out of the business? What
do you get for the franchise fee? How much training do you receive? What will
your daily duties be? What will be your biggest challenges?
The
more information you get, the more you can compare the franchises you have
selected. This results in you confidently being able to choose the right
business for your investment.
Assess the franchisors
It is really important that you find out
about the franchisors - the more information the better. They should be more
than happy to answer any questions you have about themselves (a favorite topic
of the franchisors here at Jasper’s.)
What
are the individuals’ backgrounds? What makes them tick? What’s drives them? How
much has the business grown since it became a franchise? What are their plans
for the future of the franchise? Have they lost any franchise owners? What sort of support will you get from them?
Evaluate
their answers. Are they people that you could trust and think will help and
support you? Do they match your passion and do they seem driven to make your
business as successful as possible – for you and for them?
The
franchisors will be assessing you at every opportunity, so don’t be shy and
make sure you find out about them too!
Trust your instincts
One of the best pieces of advice I can
give to you is to trust your gut.
Remember
that when you are buying into a franchise you are buying into a partnership
with the franchisor and their network of people. Attend their discovery day and
take time to assess how you are feeling.
Are
you uncomfortable in any way or do you have any feelings of unease? This
doesn’t necessarily mean that the franchisors are untrustworthy, but it might
mean that they aren’t the right fit for you. Make sure they share your values
and ethics.
Accept that you can’t know everything
It
is important that you have a clear understanding of what you are investing in,
and it is really important that you know as much as you can about the business
systems and processes which will manage your business and drive you to success.
It is however, unrealistic to think you can know absolutely everything – that
only comes when you actually start and get stuck in yourself.
You
will have done your research by now thoroughly and intelligently, and made
comparisons between different franchises. By this point you should be able to
narrow your search down to the final one or two and be ready for the final
step…
Make your choice!
This is the final piece of the jigsaw puzzle, the
last step...
Make
the choice when YOU are READY. This isn’t just an off the cuff investment –
this is a huge decision and one that will hopefully be life changing for you. As
big as the decision is, remember it is also a very exciting time– so allow
yourself to get excited about it! Every new venture involves risk, but the vast majority of franchise owners are successful
because they follow built-in proven success formulas and have the support and
backing of dedicated franchisors.
By
following these 10 steps you will find yourself in a very knowledgeable
position about the franchise you are investing in.