How Franchising is a Brilliant Way to Start Your Own Business Without Needing a Revolutionary Idea
Whether it’s winning the Rugby World Cup or the Lotto, us South Africans are a nation of dreamers – and it’s no surprise that many of us dream about starting up our own business.
However, for many of us intent on quitting our day jobs to become our own boss, a big stumbling block is… the business idea.
When every business idea seems to have already been dreamed up, don’t worry about having a revolutionary idea or waiting till you win the Lotto, just choose one that’s already tried and tested… become a franchisee.
In summary, this is how you can start a business without a revolutionary business idea:
- Become a franchisee
- Find a low-budget franchise
- Start with a tried and tested business model
- Research trends and use market insight
- Maximise on your hobbies and interests
1. Become a franchisee
With a proven business model and low-risk way of starting a business, a franchise is a great way to go it alone. It doesn’t require you to have a business idea, as the idea is already well established.
The franchise model enables you to trade under their branding while selling their products and services. You would typically be required to establish premises and equipment that conform to their standards and there are many other rules that govern the relationship – so you’re not entirely your own boss. But you do immediately have a defined marketing and advertising strategy in place – with the majority of consumers already knowing what to expect from your business.
Finance is important, of course, and with a franchise banks and lenders are also traditionally more favourable to franchises than start-ups, as they often see franchises as having a greater chance of surviving.
2. Find a low-budget franchise
You do have to provide some of your own capital. A common barrier to many people deciding to take the plunge and start their own business is a perceived notion that it’ll cost them a lot of money. Not all franchises require vast sums of investment to take off. So, if you’re still waiting to win the Lotto why not start by researching and finding a franchise business on a shoestring budget? While there’s never a guarantee of success or survival, you can take a chance with less risk.
3. Start with a tried and tested business model
The single biggest advantage of franchises is that they leverage off a tried and tested business model. So if you find yourself struggling to think of an entirely unique business proposition, there’s no reason why you can’t just take the road most-frequently travelled. It’s often said that imitation is the biggest form of flattery, so find a highly successful franchise enterprise with a tried and tested business model.
4. Research trends and use market insight
There’s an old rule in business that states ‘you don’t have to be first, you just have to be better’. The truth is that, the majority of start-up businesses also never dreamed up something completely original, they merely improved upon an existing business or trend. However, while you don’t have to be first to the market, you certainly can’t be late or your franchise business will have little chance of success if it arrives into a saturated sector. So do your research on franchising trends and gain market insights into what’s trending. Try to anticipate an emerging trend and identify a franchise system moving into that trend.
5. Maximise on your hobbies and interests
To identify a franchise – start with what you’re good at: it’s a well-worn piece of advice that if you enjoy what you do, you’ll never work a day in your life. Going ‘fulltime with your pastime’ comes with many advantages – not only will you have a pre-existing knowledge of the industry and space, you’ll also already be naturally suited to the working environment and shouldn’t need to waste time perfecting your knowledge. For example, if you’re a problem solver and good with your hands, something in the electrical or plumbing line might be an option. If you’re a qualified teacher you could potentially earn a lot of money by joining an education franchise such as tutoring.
Ready to turn your business dream into a reality? There’s never a time better than now.