Starting a business is not for everyone. Some people prefer the safety net of being an employee with holiday pay, sick pay, and a guaranteed income. However, if you dream of being your own boss, making decisions and enjoying an income with no ceiling, becoming an entrepreneur will be right up your street.
Anyone can become an entrepreneur – as long as you have a viable business plan and the motivation to make it work, there is no reason why your business shouldn’t be a success. Starting a business from scratch can be risky, however, particularly if you have no previous experience. For this reason, a franchise is the perfect starting point for less experienced entrepreneurs. In return for a cash investment, you get an out-of-the-box business that is ready to go.
Franchises are proven businesses. There are already people out there working in an identical business, so if you follow the guidelines and use the marketing materials provided, you are far less likely to run into problems.
Help and Guidance
Working with a franchise is like working for a family business. You are surrounded by a stable support network, so when things go wrong or you have any questions, there is always someone on hand to help you. Starting a business from nothing is very different. You may have the support of a business mentor, but a more likely scenario is that you will be on your own from the get-go. Some people like living by the seat of their pants, but if you have no previous experience of running a business it can be a scary time.
Investing in a Franchise
The great thing about investing in an existing franchise is that you are not going in blind. There is normally a fairly long application and approval process with most franchises, so both sides have plenty of time to consider whether the move is the right one for them.
The Downsides of Franchise Opportunities
It isn’t always a bed of roses with franchise opportunities. Many premium franchises require that franchisees invest a significant amount of money in the venture in order to ensure it succeeds. However, there are plenty of smaller franchisors that don’t require such a large capital investment.
The other main disadvantage of operating a franchise is that you have to work within a strict framework. There are rules to follow and a brand to protect, so you can’t start changing products and services, or redesign your company logo. Maverick entrepreneurs will find it hard to toe the line and if you are the type of person who hates following the rules, a franchise is probably not the best business plan for you.
Don’t forget that it isn’t only your decision when you apply to run a franchise. Even if you think the franchise is perfect, they might not like you. Some franchisors only consider people with a proven track record in business and good financial history. If you don’t tick the right boxes, your application will not proceed.