6 Rules to Buying Yourself Employment
In these difficult economic times, it is likely that you have had your salary reduced or even been retrenched. If not, you may still have serious concerns about job security.
Your chances of being re-employed over the next 2 to 3 years are minimal unless you possess incredibly special skills.
A Solution: Buy Yourself Employment
Be entrepreneurial and consider buying or starting a business that will create employment for yourself and ultimately, members of your family.
If you are not naturally entrepreneurial, buying a franchise could be a good alternative.
However, starting a business comes with a huge warning!
A failed business could not only take up all your savings but also put you in debt for many years due to the sureties you would have signed for a bank loan, property leases and the like.
So do your research and homework again and again before you part with your hard-earned money.
Starting a business is often likened to buying a house, however, if you make a mistake, the house price might decline, whereas a failed business may result in you losing all your money and more.
Rules to Follow in Planning to Acquire a Business
Rule 1: Select a growing market segment
In an abnormally depressed economy, struggling to recover from Covid-19, what are the growth segments?
Some industries to investigate are:
- Home Based
- Internet services to enable connectivity at homes and offices
- Delivery or courier services
- Storage solutions
- Care for the elderly
- Automotive maintenance businesses as people will drive their cars for longer, out of their motor plans
- Building Improvements and DIY and hardware retail and services as people will improve their homes as they spend more time in them
- Cleaning services
- Occupational health and safety
Rule 2: Select a successful brand in your chosen category
Not all brands are equally successful, even in a winning category. Research the brand including the following activities.
- Study the Disclosure Document. If the franchise doesn’t have an updated Disclosure Document, it indicates a red flag.
- Visit and talk to a sample of existing franchisees – these should be included in the Disclosure Document with contact details.
- Google directors of the company and study their track record.
- Contact and speak to the Franchising Division of the bank the franchisor banks with.
- Speak to a sample of their suppliers.
- It might even pay you to employ a franchise consultant to help you with the evaluation.
Rule 3: Ensure you are going to get a good return on your Capital Investment
A good franchise should enable you to draw a market-related salary and get your capital back in approximately 3½ years.
Rule 4: Make sure you have sufficient Working Capital
A business may take a little longer to break even and to register for VAT, make sure you have working capital to see you through this initial period.
Rule 5: Site Selection is critical
Make sure you select a site in the right location and the rent proposed by the landlord must fit your financial projections. This is so important, do not rush it and if the suitable site is not available, delay the launch. It might pay you to get an expert to do a professional site evaluation for you.
Rule 6: Motivated and well-trained staff are critical
Spend time to make sure you hire good staff. Get referrals, research their past, and have second and perhaps third interviews. Once hired, train them well and make sure they are well paid and motivated.
Let Us Help You Make This Life-Changing Decision
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