Guide to buying a franchise – What you need to know: part 1

Business franchising is one of the safest and most risk-free ways to start up and run a successful business.

However running a franchise isn't for everyone, so take time to understand what running a franchise involves before you decide to commit.

Business franchises are lower risk than trying to do it yourself mainly because the business franchising formula and business support model is proven and successful.

Here are some essential Budget One tips you’ll need to find your ideal fit.

Choose a franchise business that you'll enjoy

Buying a franchise that you will enjoy is the most important factor of all. Bookezy Franchises has over 28 different business categories to choose from at a low entry price of under $5000 while others such as Jim’s Franchises can cost upward of $100,000, so you need to choose carefully to find your right fit and how it will impact your initial start up funding capability and what your get for your investment.

Historically owners who invest in businesses they enjoy are more likely to succeed because:

• You will be more passionate
• You will have a thirst for knowledge
• Your passion will project onto your customers
• You will find it easier to get out of bed each day and
• Being an expert and a specialist in what you do will help you stand out from the rest of the crowd.

Do your homework

There are thousands of different business franchises to choose from which can be overwhelming from start up territories which cost much less but require more spade work to established territories which come with ready work but a bigger price tag.

Do some local market research to gauge demand for the products and services, and test the strength of the franchise brand.

With the internet and social media information about the franchise brand is easy to seek out, so do your homework and satisfy your concerns that you are investing in the right business model to suit your exact needs.

Trust your instincts, you’re usually right.

Buying a franchise means entering into a long term business partnership, your relationship with the franchisor, and their team, will influence your success.

If you have the slightest doubt as to the integrity of the franchisor and their team, think carefully before you go ahead with them. You have a higher chance of succeeding and receiving an appropriate level of appropriate support, if there is a good emotional 'fit' with the franchisor.

 In a Guide to buying a franchise – What you need to know (Part 2), we’ll cover more about what numbers to crunch when challenging a franchisor’s business plan and financials to make sure you’re selecting and entering into a business with a robust profit model.

If you want more help or support talk to the experts at Budget One where our start up success programme looks at all the fatal flaws and growth opportunities of all franchises, and we work with you to lower the risk and find the right business model that meets your desired result. Call us today on +61 3 9583 7925.

 Author, Taso Tounis