5 Reasons Franchising Suits Young People
You only need to look at how many young people dream of being self-employed to see the level of ambition among those just entering the economy. Often, you’re eager to learn and keen to get involved in training programmes – just the type of person that is a franchisor’s perfect business partner. Franchising is also great at creating employment in South Africa, you create your own future for yourself and are then able to provide jobs for others. You don’t have to be dependent on an employer to employ you.
Franchising is a business model that requires a certain amount of training to get up to speed with the franchise’s rules and procedures. Some people don’t like to be taught or to follow instructions so adhering to a tried and tested business method won’t suit everyone. As a recent school leaver or graduate, you’ll find this prospect less daunting, as you’ve just left higher education and will be keen to keep growing intellectually.
1. Not set in your ways
You’re motivated and aspirational, and what’s more, not set in your ways.
A willingness to learn is a great asset, as is simply not having the attitude one knows everything. That latter characteristic can drive some seasoned business owners to feel they know better than their franchisor and go against the franchise guidelines. Franchisees need to be able to follow strict rules of the franchise and how it is meant to be run in order to be successful. Consistency across franchise units is key to your – and your fellow franchisees’ – success, so it’s vital you follow the rules.
If you have a great idea, you can always raise it with your franchisor. They’re in the best position to decide whether to implement your idea across the entire franchise network.
2. A quick learning experience
Franchising offers a shortcut to business success, with comprehensive training schemes and high levels of business support. This is ideal for youthful entrepreneurs who may have plenty of aptitude, but not yet all the skills they need for a start-up. It has a proven business model and brand, as well as all the tools you need to run a thriving business in record time.
A way to ease into your first franchise is to possibly offer to work for an existing one to gain the knowledge, confidence and experience and also to decide if the franchise and industry are for you. Some franchisors offer employees the opportunity to eventually purchase a franchise as a career path development and enterprise development initiative (for staff that perform well and suit the profile of their ideal franchisee). An ideal place to start is with a low-cost franchise to suit a young pocket.
3. Fewer personal responsibilities
Most likely you may not yet be burdened with other commitments. By launching into your franchise career early you can put in the hours to get your business off the ground before you have other big life commitments.
Take this time to try identify your natural strengths and weaknesses. Leverage your strengths and improve on your weaknesses or find a way to work around them to your advantage. You may be familiar with using social media, and this is a vital way to improve sales by creating effective online promotional campaigns.
4. A strong support network
While you might not have dependents, you most likely still have a close network of family, friends and people in your community to advise you, support you and possibly even provide money. That emotional support during difficult times is priceless. You’ll also have a tremendous level of support from the franchise network. There will always be difficult days, but you’ll always feel loved and receive words of kindness and plenty of distractions when you’re not feeling positive.
5. You’ll learn
Nervousness is common – in fact, it’s essential you have the rush of adrenalin that comes with a new venture. It can be tough to ‘be the boss’ if your staff are older, but your business needs a strong leader, and even if you don’t feel like one yet you should “face it till you make it” and assume the role with confidence.
Low-cost franchise opportunities offer young people with limited capital the opportunity to invest in their future by starting with a smaller, more cost-effective franchise opportunity and eventually growing your business and potentially become a multi-unit franchise of the brand or seeker other franchise opportunities as your funds/capital increase
An especially important aspect of purchasing a franchise that cannot be avoided is that you have to have sufficient capital – there is no way around obtaining a franchise without it. If you haven’t been able to save or generate money or perhaps receive a loan from a close network you are a part of, this option of being your own boss may not work for you. Franchises require 50% of unencumbered funds (cash) before you apply for a loan from a financial institution. Remember that with capital comes risk factors.
Remember, as a young entrepreneur you have something others don’t. You have the vitality of youth even if not the experience. So, use your positivity, high energy levels and unquenchable ambition to your advantage.