Six tips for those thinking of opening a franchise

At Esquires we provide a bespoke solution for every partner’s needs, Owning your own business is a thrilling prospect, allowing you the opportunity to take control of your career, face new challenges and, most importantly, reap great personal rewards. Here are some useful tips if you are thinking of opening a franchise:

Choose something that you enjoy.

A cliche I know but they say that if you love what you do you will never do a day’s work in your life! Buying a franchise that you will enjoy is the most important factor of all. Most businesses – all types of business, not just franchises – succeed when the owner truly enjoys the products and/or services that the business supplies. If you really enjoy and are interested in the products and services, and the customers and markets, then you will learn and gather information and skills rapidly. When you work in a service or product area that you love, you will enthuse about it, and your enthusiasm will be conveyed to your customers and everyone you meet.

Do your Research

There are thousands of different business franchises, and there will be more than one in your chosen business area. Once you have made the decision to buy a franchise business it is difficult to turn back. A wrong decision takes a few seconds to make, and for some, a lifetime to put right. So do your research. Look at the alternatives. Ask existing franchisees, customers and bank managers. Read the franchise trade magazines, newspapers, websites and attend franchising exhibitions. Become an expert before you sign the papers – don’t wait to learn about the ‘unknowns’ after signing the contract and parting with your cash.

Always trust your instincts

When you buy a business franchise of any sort you are entering into a business partnership, in which your relationship with the franchise owner will be absolutely crucial to your success. You must be able to trust and work with the franchisor and the franchise company’s staff, if you have the slightest doubt as to the integrity of any of the people within the franchising company think extremely carefully before you go ahead with them. Trust your instincts.

Look for a good business profit model

Successful businesses – not just franchises – are always based on a sound and healthy business and profit model. Most franchises tend to have this, or they can’t operate, but check the extent and sustainability of the financial model. The better the profit model then generally the easier it is to start up, run and maintain a successful business.

Look for a brand with Integrity

Look for and buy a franchise which has high integrity at the centre of its products, services and business ethos, and you are halfway to running a high integrity franchise business – all that remains is for you to ensure that your own input and activity are high integrity too.

Understand the Financials

You need to understand how long will it take you to recover your investment – in other words what is the payback period – how quickly will the franchise realistically and reliably get into profit? This is a crucial indicator, and one which you must understand and be assured that it is acceptable and achievable before you buy any franchise.

……and finally Good Luck!

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