If you decide to build your own business, there are a lot of factors to consider. Which path do you choose to reach your goal?
If you choose the franchising route, you are welcome to take a look at all the franchises available here. We’ve also created a list of questions you should ask yourself before you decide to buy a franchise.
1. What are your long-term goals?
What would buying a franchise mean to you? Is it another source of income in which you’re willing to invest, or are you looking to run a business in an industry that you’re genuinely passionate about? Whatever the case might be, running a franchise would most definitely involve working very hard, especially during the first year. However, if what you’re after is a source of income that would help you in the short-term rather than something permanent, you should ask yourself whether the investment and the work are worth it.
2. How would buying a franchise help you achieve your goals?
Different types of franchises offer different things to their franchisees. For example, most tutoring franchises offer opportunities to work from home, which works for people that want more flexibility. Other franchises, such as some business services ones, would require more involvement, and would be suitable for people who want to be as involved as possible. Before buying a franchise, you should, therefore, consider what it is you’re looking for and how buying a franchise would help with that.
3. What are your strengths and weaknesses?
Your skills and experience, your strengths are going to be an important asset for your franchise. You, therefore, need to consider them carefully and weigh them against your weaknesses. While a lot of franchises do not require a franchisee’s direct involvement with the products or services, it is advisable that you choose a franchise that is right for you. For example, if you don’t have skills or interest in languages but prefer performing arts and have experience working with children, a theatre children’s franchise would be a better fit than a lang children’s franchise, and vice versa.
4. Can you realistically afford such an investment?
Buying a franchise is a big decision, and most franchises listed on Reed Commercial require an initial investment starting from £999. This investment, coupled with the risks that each new business faces in the first year, are certainly worth thinking about, especially if you are uncertain about whether you’re willing to commit to a franchise in the long term. Building a business takes up a lot of time and effort, even if you’re working from home. So we advise that you assess your savings and consider how much time you can realistically dedicate to running a business, taking into account all of your other commitments. It’s also worth seeking financial advice from the bank, as many people fund up to 75% of the investment using bank loans. Not sure if you have enough collateral to finance a bank loan? The Enterprise Finance Guarantee is available from the UK government to help you fund your franchise and, depending on your location, you may be eligible for a whole range of grants and schemes.
5. Is franchising for you?
Finally, you should know that running a franchise is not for everyone. There are a lot of advantages to becoming a franchise owner including the support from the franchisor, the proven business model and the success rate, as BFA research shows nine out of 10 UK franchises turn a profit. However, your vision of your business might not be the same as that of your franchisor. Having a consistent brand identity is very important for a franchise’s success.You should seriously consider whether you are willing to be a part of an already existing brand or whether you would prefer to be as independent as possible.
Still unsure about which franchise you would like to buy? Then click here to see franchises for sale and tailor your search by investment value, location and lifestyle category.Tags: buying a franchise, investment, own business, questions