Look at the world around you. There appears to be so much change around It can seem rocky. But look at it from another perspective: Change is a constant. It is well known that Change = Opportunity. The most current change in business right now is where the pandemic and technology have transformed the way things are done. In some cases leading to business closure. And yet, most of what people experience has not changed. They still need to eat; still, need to buy things, still need services to ensure their lives run smoothly.
One of the neatest ways to get into business is through franchises. Also, one of the smartest.
So, what do you get when you buy a franchise?
At its simplest, you buy know-how, procedures, processes, intellectual property in regard to the brand and its business model with the rights to sell its branded products and services. In return, you take on the responsibility to pay certain fees and obligations. All set out in a Franchise Agreement.
6 Reasons to buy a franchise
- Be your own boss
You can get straight into business and be your own boss/create your own job. If you at rein a job, you really have no control. However much you enjoy what you are doing, you still have to turn up the proverbial 5 out of 7, 9-5 or something like it and request limited time off. All for what they choose to pay you.
For many, especially in larger organizations, there are office politics, paper carriers and brown nosers, all of which can get in the way of you rising to any sort of position and salary that matches your ability. Enterprise and bright ideas are often frowned upon, maybe even stolen.
Most people today work in large organizations, often sub-companies of conglomerates and often multinationals. A decision made way up there and somewhere else can suddenly mean you are out of a job with little or no signs that it was coming, And there is nothing you can do! Check out today’s High Street.
- It’s off the shelf
Sure, you can set up your own business and be your own boss. But, to do so requires you to do all the heavy lifting: finding a niche that builds on the line of business you are in or on the skills you have; finding and building a viable market, building brand and product recognition; working out pricing; getting the right equipment and premises. Did I mention paperwork, licenses, employing staff, training them? And more, much more…..!
When you buy a franchise, you know what you are getting: there is a brand already out there; the customer base is identified and you have a product range tuned to their needs; you have systems set up that work and you will be trained in their use. Also, you are not limited to your own narrow skills and experience as you will be trained up in skills you do not have.
- Less Risk
To put it simply, in setting up your own business, you are almost certain to make mistakes since a lot of what you may be doing will involve learning as you go. Hopefully, they will be minor so that nobody but you notices and, even then, only in hindsight. When you join a franchise, the franchisor will have developed and worked the systems and product lines. By the time you come on board pretty well, all the issues will have been ironed out by the franchisor and franchisees who have joined before you. So, things should run much more smoothly for you. Instead of learning as you go and having the scars and bruises to show for it, you will be trained from the outset, monitored as you find your feet and will always have access to the franchisor and the network of franchisees.
- Funding your business is easier
It may cost more than you have to start a business. Thus, you will have to look around for funds. Almost inevitably, you will go to see your local bank manager. You may have had an account with them for years. Hoverer you will soon find out the truth of the old saying that a bank will only lend you an umbrella if it is not raining.
You will find your friendly bank will now have a stony face and a lot of demands: Have you a business plan? Does it hang together? How much are you putting in? Who else is investing? What can you give us as collateral? Sign this, sign that. If you are made an offer, it may well be for less than you asked for/ or need and at a higher rate than you expected. The fact is, the person you are dealing with is not a decision-maker. They may have to sell your proposition upstairs and, even then, much may depend on how much lending your branch has already done at that stage of the month and their view of the industry you are entering.
Don’t get me wrong, you probably will still have to go through this process when you are setting up your franchise business but the path will be a lot less bumpy. Why? For a start, the franchise is a known quantity: you can demonstrate its track record, your business plan will be a lot less back of the envelope, you can show you have support.
- You are not alone
There will be support in all sorts of skill areas likely to beyond your basic knowhow: support with finding the right premises in the right area; support with building design and fit-out; access to business data and strategies; training support; marketing; share in high volume purchasing; you will have ready access to the franchise team and, of course, other franchisees
- You aren’t going in on a wing and a prayer
There are so many unknowns when starting out on your own it can feel like you are going in blind. Less so with a franchise: there is the experience you can check out and call upon, more security in terms of funding, knowing your product and your market, indeed, your market may already be aware of the brand and be ready to go. Advertising that works will already be available to you.
That’s the big picture but what about your own franchise? Obviously, it’s not all roses and plain sailing; you most certainly have to do due diligence; you do have to be committed and put in the effort but the rewards are there: you will have created your own job and income and may well have generated jobs for others; you are your own boss, you make your own decisions, had the confidence to back your own judgment and skills; you control when you work. When you decide to retire you have an asset to sell or pass on to your heirs.
If you’re looking for the extra edge for success, Fifo Capital can help.
Give your business options with Fifo Capital.
To speak with our team, call 01 691 7515.
P.S. To be eligible for our Invoice Finance service, your business must be a limited company that serves and invoices businesses on credit terms.
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