Choosing the Right Franchise Opportunity
Entrepreneurs looking to make it in business can opt for many different paths. They can start their own business from scratch, go into a partnership, or even purchase a franchise. Franchising is a great way to start your own business, become self-employed and reach heights that you never had previously thought possible. There are many advantages to purchasing a franchise, but it’s also vital that potential franchisees know the possibly pitfalls and risks involved, and how to choose a franchisor that will offer you the best chance of future success. We will help you look for the right vehicle.
Reminder: What is a franchise?
A franchise business model is one where the owner of an established brand licenses you to open a new location using that brand’s logo and business model to make money for yourself. To give you an example, Wings Mobile Detailing offers this model. Those wishing to start their own car detailing business could do it themselves from scratch, but when they purchase a franchise, the money they pay includes everything they need to set up their business instantly, including specialist training and other support that they need to get off the ground, while avoiding pitfalls.
It’s a common enough model in the marketplace today, but that doesn’t mean that all franchisors are equal. Franchises like Wings offer a great deal in terms of after sales service and support, but many franchisors offer a kind of “sell and forget” model where the franchisee is left alone to either sink or swim. Stay aways from those.
There are many franchises out there today that are big brand names and have been around for decades, but you shouldn’t automatically assume that these established brands are the ones for you to choose. Remember, huge franchise corporation that stayed in the marketplace for many years are falling because they haven't followed the new modern age advancements. So, the amount of years a franchise have been around shouldn't be a decisive factor.
What to look for when choosing a franchisor
Let’s say that you’ve decided to start your own business and you want to pursue the franchise model. First things first, good choice! It’s a great way to achieve your goals, and takes away a lot of the difficulties that many entrepreneurs face when starting a business from scratch. What we need to impress on potential franchisees however is the need to study each franchise you’re interested in carefully, and to consider the following things:
1. Is the franchisor active in the world of social media and other platforms promoting their brand, their franchise model and their dedication to success?
You should look into each potential franchisor you want to work with. Find out if they are actively putting themselves out there, promoting their brand and pushing their message, or if they are quiet. A franchisor who is not out there promoting their philosophy, possibly because the brand is seen as “established” and therefore immune to obscurity, is one that perhaps does not truly believe in or have passion for what they are doing. Be wary of this.
2. Will the franchisor go on a journey with you? Or are they just selling you the basics-only package and moving on?
Some brands will sell you a franchise with a basic starting kit. They’ll get you set up, but then leave you alone to manage and run the business entirely under your own steam. If you are happy to take a brand and roll with it all by yourself, then be ready to face many challenges and mistakes along the way. If you want a franchise to be a vehicle to massive professional development and financial success, then you need a franchisor who is going to go with you on that journey.
Such a franchisor will offer more than basic training and equipment. They will teach you an ethos and ways to build an initial client base. They’ll brace you for potential problems, and harden you up so that you can deal with setbacks more professionally and efficiently.
3. Does the franchisor tell you that it’ll be easy street all the way to the bank?
As Andre Mezalira says in his PodCast, “the more comfortable you feel, the more you have to be careful.” Any franchisor that tells you it’s all easy are misleading you; it’s a red flag. Franchising is not a get-rich-quick scheme. You still need the same level of dedication and spirit as though were starting your own brand from scratch.
4. How much are they asking you for?
The price you pay for a franchise should depend on your ultimate goal. Are you looking to stay a one-man-band and build a lifestyle business? If so, then you shouldn’t be paying in the range of $100,000 or similar. If you’re looking for the huge professional and financial growth opportunities, then you may have to be prepared to initially spend more.
What are the reasons to become a franchisee?
When you’ve considered all the aspects, it’s important to also be aware of the reasons to proceed with your franchise dream. There are different reasons to do it, some better than others. Below we will look at the best reasons to become a franchisee
a. Cuts out wasted time --- since you don’t have to engage with the bureaucracy that the franchisors have gone through to set things up, you save a lot of time and money.
b. Potential to gain a return faster --- thanks to having a recognizable brand as an ally, you may find it easy to get established and build your business more quickly than if you were to start from scratch.
c. You save a lot of money, as well as time --- branding and marketing are expensive endeavors, so not having to worry about those as much as your own brand makes franchising an attractive choice. Obviously, you will still have to market your services locally in your area.
Finally, the best reason for anyone to get into franchises is the fact that they are, when thought about and chosen correctly, an excellent vehicle for financial independence and the achievement of your professional goals. By working with the right kind of franchisor, you can gain more than a business model, but also a mentor and support network that will help you through the biggest challenges you’ll face in the future as well as preparation to when you go through bad moments in your business. Franchisors will show you that it's all part of the game, consequently making you not give up nor stressed.
For more information on Wings Mobile Detailing franchising opportunities, contact us today.