Picking The Right Franchise For You
Choosing the best franchise opportunity for you is a difficult process and there are a myriad of factors worth considering. Eventually, however, the time comes when any investor has to take the leap of faith without so much as a backward glance.
Here we take readers through the most important areas of consideration when looking to invest in a franchise business.
What have you experienced in your previous employment? Consider whether the roles you have had and the skills you have used are applicable to your new role. Most franchises will involve customer service, or interacting with people hands-on; this must be something you are able to do or can learn to do well. Consider whether your new position will be something you enjoyed from your previous work or if this move is a new step for you.
If you’re interested in beginning a new career and, then displaying an interest in a franchise is not a bad thing. You are broadening your search and within this environment of managing your own business, you are paving the way to a new career.
Return on Investment
While investing in a franchise can be a bit of a gamble, estimations of the money the franchise will make within a time period are never completely accurate. For example, if £200,000 is invested in a franchise, estimating that within the first few years the average income would be £150,000 in expected income, you would subtract the annual amount of your pay from this amount (£60,000) leaving £90,000 per annum as the return on your investment and your time.
Another very important part of investing in a franchise is the topic of moving to a new location. Due to some businesses being located in different parts of the country or even mobile franchises, this can be a great way to travel and explore new areas of the UK or even further afield, perhaps in Europe. This can, however, cause some problems such as where would the franchise be based? Or what area is your territory in the business?
Be sure to meticulously research each franchise that interests you; consider whether it is the right business to invest in for the long run and whether it is an offering you can pass down to an heir. In theory, the prospect of working everyday in an area of business that interests you personally seems ideal, but the reality is that turning your hobby into an occupation may become tiresome and you may grow weary of it.
Fad businesses and fleeting trends plague the franchise industry like no other. Be sure that the franchise you are buying into will have scope to grow in future markets as technology advances and society develops. Of course, if market trends were easy to predict, you would be too busy sunbathing on your millionaire’s yacht in St Tropez to read this article, but making a well-educated prediction based on company history, external factors and theoretical figures is crucial.
In essence, picking a franchise is about choosing where you fit into the UK business world. Select a franchise where you like the product, are happy with the role and can work with the franchisor. In the difficult area of franchise selection, research really is your best tool for manufacturing success.