What Do I Need to Start a Franchise?
When it comes to opening a new business, choosing a franchise is always an easier option. The key ingredients to a successful first step are passion and initial investment capital. But the devil is in the details. There is plenty to consider when it comes to a new business venture. If you feel like you are ready to commit to a new working life, here are a few key points to consider:
Passion: Being passionate about a new career is key. With so many options for franchises, it is possible to pick a business that is in your desired industry. Many people think that you need years of experience in the industry in order to own a franchise, but the reality is that passion is your key to success. If you are interested, engaged and willing to learn, you are an excellent candidate for this type of partnership.
Education: It is possible to get the ball rolling on a franchise without formal industry training – in fact, it can sometimes be better. Franchise ownership comes with strict procedures and that means company training! Between technical training and access to resources, new owners have all they need to succeed in the industry. When starting a standalone business, owners are on their own. When coming across an obstacle, it is not exactly possible to call up a competitor to ask how they would deal with a given issue. A network of support from sister franchises or other partners means being able to ask those difficult questions and gain insight into your business and is a huge resource.
Cost: Initial investments are not the only cost associated with a new business. Before any paperwork is finalized, it is important to research any other costs, both standard and unexpected that might arise. Accounting for materials, staffing, insurance, property leases and training expenses, will help to avoid any uncomfortable or stressful situations.
Location: Ensuring that your desired territory is available can prevent a lot of headache. Once a territory is chosen, it is time to buy or lease your space. The decision to buy or rent is a big one, so it is important to use your network of resources to discuss the pros and cons of making such a large purchase. The good news is that if settling into real estate is too much of a commitment, you can always change your mind later!
These are some helpful tips for anyone who is hoping to jump into the world of business ownership, potential franchisees should always feel free to consult with a franchisor to properly understand their expectations starting out and going forward.