The Franchise Advantage
Could a franchise be your key to success?
The main reason many people consider a business opportunity is that it allows them to work from home. This is obviously advantageous to anyone with a young family or just wishing to work for themselves rather than the traditional rat race of working for someone else.
The problem is what to choose? You don’t have to look very far online to see a whole host of business opportunities all promising you wealth and a brighter future… many using just a laptop and your own front room. It sounds perfect doesn’t it?
Although there are a good number of legitimate business opportunities, there are also a whole host of unscrupulous individuals who would love to take your money on an empty promise. So what can you do to minimise the risks?
Substantiate claims
Many business opportunities claim you can make lots of money very quickly. Make sure you see some real firm data, preferably corroborated by third parties and not just some figures that an individual could have made up.
References
This is important since an individual or company promoting a legitimate business opportunity should have no problem with referring you to people who are already working their business opportunity successfully. There’s no reason to hide a success story. Preferably get telephone numbers not just quotes on a web page.
Talk to the business owner
Make sure you can call the business owner, don’t ever hand over cash via email or the web. It’s important to know who you are dealing with and trust your instincts. Do they appear genuine to you? Do they skirt around questions you pose to them or give you direct answers. Again, anything which appears they are not forthcoming probably means they aren’t being straight up with you.
The Franchise Advantage
A franchise can give you additional security over another type of business opportunity you might have seen. A ‘franchise’ is quite simply a business formula that has been tried and tested, documented and then made available for replication by another who might want to set up their own business.
The main advantage here is that there are organisation set up, such as the British Franchise Association (BFA) in the UK, that can offer help and advice on any franchise business you might consider. The BFA also have a membership scheme for those offering franchise opportunities (the franchisor) which may give you an added layer of security when investing your cash in a new business.
Here are some other key advantages of a franchise business opportunity:-
- The NatWest/BFA annual survey consistently reports in the region of 90% of UK franchisees are operating profitably in any given year. Other countries have comparable statistics on franchising.
- You are working to a business system that ought to have been tried and tested by a franchisor.
- Most franchisors provide training and support backup.
- The franchise business might have established branding and reputation which you may benefit from.
And here are some things to bear in mind that may differ from a non-franchised business opportunity.
- There will usually be an upfront franchise fee to cover setup and training costs.
- Some franchises charge ongoing franchise management fees (often a percentage of turnover or profit) that cover ongoing training and support.
- You will usually have a contractual agreement with the franchisor for as long as you work the franchise system.
These are really just a rough guide as you will discover other points. Whichever option you decide on its key to note that operating a business demands determination, commitment and a good deal of hard work!
Tags: business opportunities, franchise, franchise advantages, uk business opportunities, work from home
