Five Top Tips for New Franchisees
Investing in a new franchise can be an exciting milestone in your working life. The potential that franchises offer for career advancement and financial freedom can be substantial, especially if you find the right opportunity.
However, in order to make your new venture a success, there are certain steps you need to take before you part with your hard earned cash. If you’re thinking about taking the plunge and investing in a business of your own, here’s a few top tips every entrepreneur should follow.
1. Choose the right business for you
Selecting the right business is a big part of starting a successful franchise. It’s important that your new venture excites and interests you and that you have the skills and the knowhow to make it a success.
If you’re investing in a franchise that’s in a similar field to the job you have now, the skill set and experience you already have should make the transition to being a franchisee a little easier.
Choosing a business that’s concerned with an industry you have experience with should also help you to spot the opportunities with the most potential and make it easier to avoid franchises that are going nowhere.
2. Hire a franchise lawyer
Hiring a lawyer that specialises in franchise law will make your life a lot easier.
Not only will they be able to give you up to date franchise advice, a specialist lawyer will be able to ensure that your interests are legally protected and that there are no nasty surprises lurking in the small print.
This will help to give you peace of mind as you embark on your new venture, allowing you to focus on building your business and making your franchise a success.
3. Conduct due diligence
Before you invest any money in a new venture, you need to conduct due diligence. This is one of the most important pieces of franchise advice you’ll get and one that you need to follow.
This means you need to do your homework and find out everything that there is to know about your chosen franchise. Find out whether or not there are any imminent expansion plans, whether the company has a good reputation in the industry and all of the details of your potential relationship with the franchisor.
4. Speak to other franchisees
Talking to other franchisees is the best way to find out about the day-to-day realities of running your chosen business.
Ask about past problems with the franchisor, about their track record and ask whether there is anything else that you need to know about the franchisor or the business before your take the plunge.
5. Review the franchise agreement
Last but not least, make sure that you review the franchise agreement thoroughly before you sign. If you find any problems, this is the time to raise your concerns and ensure that everything is exactly how it should be when you finally make your commitment to the franchise.
By taking the process slowly and ensuring you do your research, you can protect yourself from many of the pesky pitfalls of investing in a franchise, giving your business a better chance of success.