Is Franchising Right for You?
Before buying into a franchise opportunity, it is important to evaluate your personality traits and business style to decide whether franchising is right for you.
Most people still think franchising is a get-rich-quick business concept with few risks. However, as with most businesses, owning a franchise is hard work, that will you require you to invest heavily in terms of personal effort, as you will be responsible for the success or failure of your franchise.
To ensure the success of your franchise, it is important to understand that it is a long-term commitment, and that real success does not happen overnight.
The first question you should ask yourself, is whether you are willing to take on the challenges and responsibilities of managing your own business.
While franchise companies will provide start-up training and offer ongoing support, as the franchisee, you must be ready to manage the business, with a hands-on approach.
Other important aspects to consider when buying a Franchise
1. Have you chosen a franchise concept that you will enjoy running?
Prospective franchisees often make the mistake of buying a franchise that they believe will make them the most money, without considering whether they will like working in that specific business environment.
When looking at franchises, consider an industry or business area in which that you will enjoy working for at least the next couple of years.
2. The difference between an Intrapreneur and an Entrepreneur:
‘Intrapreneurs’ and ‘entrepreneurs’ are visionary-minded and committed to the success of their business. The difference is that an entrepreneur generally comes up with a great idea, and then creates a business based on this idea. Entrepreneurs are usually fully committed to the success of their own business.
An intrapreneur, on the other hand, is someone who takes another person’s idea (like a franchise) and uses it to build their business within the system they are provided with. This question is pertinent to determining whether you will be able to follow the requirements of a franchise system.
The key to a successful franchise is the reliability of the product and or service provided. Customers come to a specific franchise with the expectation that it will be consistent with their experiences at other branches of the same franchise company.
People, who are intrinsically entrepreneurial in their personality traits, may find it hard to conform to a formula that has been designed by someone else and has little room for personal expression or changes within the limits that have been set.
3. Have you had success in dealing and interacting with people?
Most franchised businesses are founded on your ability to develop relationships with people. Your ability to successfully interact with your franchisor, employees and your customers is the key to business success.
4. Do you have a support system?
Managing a franchise is a full-time job that requires many sacrifices in terms of personal time and effort. To ensure that you are able handle these pressures, it is important to have a support system in place that understands your responsibilities and the effort required to make your franchise successful.
These are some of the basic considerations to take into account when you decide to invest in franchise opportunities. Once you have thoroughly done your homework and considered all the business, financial and personal requirements, you can take the next step and starting looking for your ideal franchise concept.