Being a franchise owner over a start up can be hugely beneficial considering that you have a recognized brand and proven success model to work on. Though it is relatively less risky, starting a new franchise does have few challenges. These 4 franchise tips can help a new franchise owner get on track with their new venture.
1.Understand Your Market — Your Franchise Depends on It
Multiple years of experience in an industry is not the same as understanding who your target market is. For some spending time at a lower level can help you understand the market better. Example, working as the barista rather than a café owner. If you cannot do so, talk to other franchise owners to get a feel for the industry and how your new franchise fits into it. Being aware of the market landscape is essential to having a successful business.
2.Choose the right Location
The right location can make or break a business. Depending on what kind of franchise you are opening and your target market, the location will be the junction where their demand and your supply will fit perfectly. Food franchise requires high footfall area. In other words, a touristy spot, financial or business area or shopping mall can be your right location. Also take into consideration the competitors in that area. Your franchisor may be able to help you to choose the ideal location for your business to be able to thrive.
3.Hire a Good Team
If you franchise requires a team, then ensure you are hiring the best talent for your business. As a franchisee, your franchisor may help you with the training of new employees — this should be part of your franchise fee. Having a team of brilliant minds means you are leveraging on all their contributions and different skills to move the business forward. In other words, you can bring all their minds and efforts to achieve the goals you want for your franchise.
4.Source your Finance with caution
If you do not have the entire amount to invest in a franchise, ensure you source you financing options with care. Some banks offer franchise finance, but read their terms very carefully. Some franchisors want the franchise fee upright, while some may spread it over a longer period. Whether you use money from your own pocket, cut a deal with the franchisor, or seek funding from a bank, make sure you’re fully aware of the payment terms.
Source: Score
To get to know who are the industry key players, visit our Interview of the Week page.
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To learn more, visit our Franchising Tips section.
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