If you’re looking to go self-employed but want a tried and tested business model, franchising offers the perfect solution. Choose your franchisor wisely and you will start a business with the tools for success, while enjoying the freedom of working for yourself.
Franchisors will offer you the support, guidance, and training to get your franchise off the ground quickly and efficiently. They do the hard work – building the brand and testing the market, and it’s in their interest for you to do well.
If you’re thinking of entering into a franchise, there are number of elements that need to be considered. Here’s my check-list for anyone embarking on this way of working.
Check your finances
Like any new business venture, you will have to put your hand in your pocket. But as long as you choose a reputable franchise, what you’re paying for is a bargain – all that marketing, brand building and getting the business model just right has already been done by somebody else. Most franchisors charge an initial fee and then take a small percentage of the profits there after.
It’s not just the brand name you’re getting in this deal, you will be given the equipment you need to get your business going and then ongoing support once it’s up and running. Some of the things franchisors include might be training, stationery, a website, relevant software and a dedicated account manager.
Check yourself
Don’t enter into this way of working lightly. Make sure you can handle the self-discipline required and choose an industry type that your skillsets and lifestyle will fit around.
What’s great about becoming a franchisee is that it provides the opportunity to enter into a sector you may never have worked in before – sufficient training and a template of the business model will allow you to hit the ground running.
Check the market
Make sure you understand the market place of your chosen franchise. The internet’s a good place to start, with trade associations a useful place to find out about a particular industry sector. The Trade Association Forum lists all trade associations in the UK.
Check the franchise
Speak to current franchisees and find out their experiences and research the franchisor – find out their background and business experience.
Seek professional advice from banks, solicitors and accountants, who can help make sure everything is above board.
Business Link provides impartial information for anyone considering this way of working. Visit Business Link’s franchise section for more information.
If you’re willing to put in the time, becoming a franchisee really can be self-employment without the scary bits – you’ll benefit from a bigger marketing budget than a small business could ever usually afford and a recognised name, giving you the edge over any lone competitor. For the successful franchisee, this means more profit, independence and a better work life balance.
Anita Brook is founder of Accounts Assist a growing firm of Chartered Accountants. She’s been advising small business, sole traders and consultants for 12 years
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