Buying a franchise is a huge investment step for anyone. If you’ve been in the investment game for a while and think you’re ready for your first franchise, you’ve come to the right place. First of all, you have to realize that the franchise you’re going to buy isn’t going to be big or famous like the franchises famous all over the world. Instead, your new franchise is going to be much smaller and you’re going to be the one that makes it bigger, more popular, and more famous.
This could be a fantastic opportunity that turns your life around, but you have to approach it the right way. Investing your life savings into something is not an easy decision to make, which is why this process is going to take a lot of time to become fully realized. As well as that, buying a franchise requires a lot of diligence and patience as you’ll have to spend some time finding the perfect franchise that fits into your preferences and budget.
Luckily for you, you’re not the first or last person to buy a franchise. People who have more experience than you are able to give you the ticket to success. You can learn from their mistakes and only do the good things that they did, thus accelerating your path to success.
1. Be patient
The most important thing about franchises is patience. You’re not going to make money overnight and you have to be aware of that. This means that you’ll end up investing for a long time until you finally get some money out of your franchise. Through it, all, remember that patience is the only thing that will help you get to your goal.
2. Pay attention to the location of your franchise
Even though you may think the location is not important, it’s actually one of the most important factors to pay attention to in business. The competition is fierce regardless of what field your franchise is in. The competition also pays a great deal of attention to the location. Anyone in the business will tell you that analyzing traffic pays off. The more people walk by your business and the more people see it, the better chances you have at success.
The location is half of your business plan, which is why it definitely can’t be overlooked. Of course, you also have to be aware that this isn’t the only key to success. The right location boosts your chances of success and gives you a better chance on the market but does not guarantee you’ll make it big time.
Still, checking that the location is good and that there’s a lot of traffic does you a world of good. If the franchise you really like is in a poor location, you don’t have to give up on it right away. First, check if there’s any way you can move it somewhere more convenient. If that’s not possible, find out if you can do good business at the current location and if the franchise is worth it.
3. Have a plan B
No matter how optimistic you are and how realistic it seems that you’ll succeed, have a plan B. Franchises have failed before and they’ll fail again. You don’t want to invest all of your money in a franchise only to have it fail. You’ll end up without any cash and will have to rebuild your financial career from the beginning. So, no matter how hooked you are on a certain franchise, be realistic. There’s as much chance that it will fail as it is that it will succeed.
Having a plan B is the smart thing to do. Having a plan B doesn’t mean that you’re being pessimistic about your franchise, it means that you’re being responsible about your future. You simply never know what can happen, so you should always have a plan B in case your first plan doesn’t work out. Don’t worry, chances are that your franchise is going to work out fine if you put effort into it, but you still never have a guarantee in life.
It’s always a good idea to diversify your funds as well as to have some emergency money in your bank account. As well as that, don’t be afraid to abandon ship if you see that things aren’t going to work out.
4. Get to know company operations
Franchise operations are real and very important. When visiting the franchise you’re thinking of buying, you should get to know the company operations. As well as that, it’s important to see how much you can modify those operations. Franchises often have strict rules when it comes to operating the business. In other words, you’re often not allowed to explore new strategies and product positions.
That’s why it’s very important to know what you’re working with. If the franchise doesn’t allow you to change anything, you have to make sure that you’re comfortable with the business being run the way it’s being run. If this isn’t the case, keep looking. Of course, if you’re looking for more freedom and would really like to completely modify business operations in your franchise, keep looking until you find the business model that suits you most.
Making sure you’re comfortable with the operations means that you won’t have to worry about anything while running your business. You’ll be the right fit for the company, you’ll fit into the existing culture, and you’ll have a much easier time making something out of the franchise simply because you agree with the way it operates. This is one of the main reasons visits to different franchises are absolutely necessary.
5. Seek advice
When you’re new at something and aren’t quite sure how things work, the best thing you can do is ask someone who knows what they’re doing. Seeking advice from existing and running franchises is always advisable. There are people out there who started exactly where you’re starting right now. They understand your fears and doubts, but also know the potential problems you’re going to face.
Seek out someone who has been in the franchise game for a while and pour your heart out to them. If they’re a valuable player, they’ll tell you everything you need to know because they realize your franchise does not endanger the success of theirs. In fact, a smart franchise owner will help you because they also see the potential for collaboration.
If your business succeeds, you’ll be able to work together and double your profits. This is why it’s also a good idea to seek out franchises that are related to yours. Thinking ahead, making valuable friends, and learning from more experienced players is already setting you up for success.
6. Know the true costs of a franchise
Being a franchise may seem fun and you might be up for the challenge, but the truth is that it’s actually fairly expensive. Not only will you have to invest a certain amount of money in just purchasing the franchise, but you’ll also need to keep it up and running. You also have to be aware that you won’t be making a profit for a while. Beginnings are hardest as you keep putting all of this money into the franchise without seeing the results of your efforts. Patience is key in this period.
As well as that, you have to review the franchise agreements of the franchise you’re considering buying. There are a lot of hidden fees that you have to look out for. Marketing fees and training are the most common fees you have to look out for. Agreements will give you valuable insight into how the franchise operates and exactly how much it will take to keep it running.
If you don’t feel like you’re up to the challenge and that the franchise is just too expensive for you, it’s better to drop it. As it was already mentioned, you’ll be putting a lot of money into this, but there’s no sense in bankrupting yourself in the hopes that your profits will double soon enough. You should still have some money left over, even if you are investing.
7. Check the system
Buying a franchise means that you’re buying a proven business model. If the franchise doesn’t come with systems that work, you’re going to be flying blind. Systems need to be in place for everything from payroll and marketing to services and upsells. Before making the purchase, make sure to check that the systems are truly there and in place. Ask as many questions as you want and check everything out thoroughly. If anything seems suspicious, double-check it. Finding out if training is included should also be imperative.
You want to know in advance if you’ll be the one getting stuck figuring out the proper systems and business models or not. It’s usually not advisable buying a franchise where you have to be the one putting the systems in place when everything is already up and running. It’s a tiresome and long process that makes no sense when you’ve already got an operating business. So, make sure that there are indeed proper systems in place if you want to actually make something out of the franchise you’re buying.
8. Go for something relevant
We can all agree that trends are usually very short-lived, but there are still some exceptions to the rule. Some trends and franchises, like bubble tea, have reached maximum popularity over the last few years, meaning that they’re probably here to stay. It’s hard choosing between the trends that are only going to be popular for a few weeks and those that are going to actually stay relevant.
No matter how hipster you are, you have to realize that popularity is a crucial factor in choosing your new franchise. What’s the point in investing in something which clearly doesn’t have a future? Without people who are interested in your franchise, there is no franchise.
That’s why it’s always a good idea to look into the top 10 Australian franchises out there. You’ll get a sense of what’s popular and what the people are looking for. Then, you’ll get to choose a franchise that you can be sure has a future and that can be made into something amazing and worthwhile. It’ll be your job to turn the trend into something people will be talking about for years.
9. Choose something you like
As well as paying attention to what the people like, you should also pay attention to your own interests. Choosing a franchise you like guarantees success because you’ll always have the motivation to keep things going. Opting to turn your passions and hobbies into a profit is one of the best things you can do for yourself in your life.
Doing what you love means that you’ll never have to work a day in your life. When it comes to buying a franchise that’s related to your interests, it also means that you’ll get to share something that’s important to you with the world. Making the world a better place and enjoying yourself while doing it is an opportunity few get in life. Your franchise could be just the thing to help you be one of those lucky ones who get to see their work change the world they live in.
As you can see, you can easily buy your own franchise without worrying that you’re making a mistake. This isn’t going to be an easy period of your life, especially since you’re going to have to do a lot of work and be as creative as possible in the process. Luckily, you’re also the one with all the freedom in the world. You can choose how to run your franchise and what the best options for growth are which can just give you more motivation to actually try to succeed. We’re confident that your new franchise will be the next big things due to all your hard for and diligence.