Five criteria for selecting the right franchise
It may seem obvious but selecting a franchising business opportunity that is right for you and your circumstances will significantly increase your chances of turning that franchise into a successful business. But the big question is, how do you go about selecting the right one from the plethora of franchising opportunities? In this article, we will look at five criteria you need to consider before selecting a franchise opportunity.
As well as how a franchise business looks and feels to you, you will need to consider several things that are specific to you and the business opportunity you are looking into before you make the final decision.
1. The business has to be one that you can see yourself owning
This may sound obvious, but you will be surprised by just how many people jump into the first franchise opportunity that comes their way, which often leads to failure in the long-term. The first thing you need to do before signing up to a franchise is to examine how that franchise operates, that way you will get a better idea of whether you can see yourself operating and owning that kind of business. You will probably get a gut feeling on whether that particular franchise is suitable for you or not, so if you are less than 100% certain that it is the right one for you, the best advice is to listen to your doubts and move on.
2. Is the timing right?
Before making any kind of commitment to a franchise business opportunity, you also need to consider whether the timing is right. Of course, it can be difficult to determine the perfect time to invest in a business, but there are better times to invest than others, and only you will know when the time is right. However, it should not be just your decision alone, you should consult with those close to you who will be impacted by the move towards your franchise business ownership.
3. The franchise needs to be within your budget
Any business needs working capital, and you will need to consider this when you sign up for a franchise business opportunity. After you have paid out the money required to start the franchise, you will need to have some more money set aside for running costs before you begin to see a return on your initial investment. This will also include money for living expenses, which many people tend to forget about when setting their initial budgets, and they often then struggle in the days before they see a return on their investment.
4. Does the location you are operating in have enough potential customers?
Another factor you will need to consider before committing to a new franchise opportunity, is whether the area you are going to be operating in will have enough potential customers in order for your business to flourish. There are two main ways in which you can ensure that your area of operation is going to have enough customers for your business.
The first is to make sure that the person selling you the franchise has done his or her market research and analysis in the area you will be in control of. Once they have completed this analysis ask them to provide you with a copy of the data so that you can see the results for yourself.
Another way is to ask existing franchise owners about the area they are operating in and whether they are happy with the number of customers they are getting, and if the franchisor helped them to determine whether that area would be suitable for them.
5. The franchise you choose should be one that matches your specific skills and experience
Prior to signing up for home-based franchises, you should consider whether the franchise you are interested in is a good match for your skillset. There is no point setting up a plumbing franchise if you have no experience or qualifications as a plumber. Therefore, you should make a list of the things you can do and have experience of and then find a franchise business opportunity that best matches your skills.
Nevertheless, do not be discouraged early on if you feel that you do not have the complete set of skills or experience for the franchise you want, as most franchisors offer skills training that will help to fill in the gaps in your skillset.
In summary
If you are looking to increase your chances of owning a successful franchise, you should make doubly sure that the business opportunity you are looking to invest in is a good match for both your business and personal criteria. Take a look around the Franchise UK website and find your ideal franchise, be it a food franchise or an office based one.