Are you looking to start a business, but not sure if you want to open a franchise or start it up on your own? There are thousands of franchises generating a turnover that exceeds billions of dollars. A franchise does not guarantee success, but statistics show that, compared to small independent businesses, franchise or distributorship companies like SilkSense have a better chance of success over a long period of time. Franchising is perfect for those who don’t want to start a business alone.
Before buying a franchise, its best to ask yourself the following:
I want to open a business, is franchising right for me?
Franchising is not everyone’s cup of tea. For many, it is a way to become their own boss, while having the security that a franchisor provides. Starting a business alone is stressful. By becoming a franchise owner, you will be the boss, but you will still be reporting to the franchisor. Some also view franchising as an avenue to earn extra income. When you buy into a franchise, you do so because the business model is tried and tested. There is a lot of cost in running a start-up business, so this is one reason people prefer to buy a franchise. You sign up for an established brand, where you already have a lot of legwork done for you. There is an effective business model in place that can be accessed after having made the initial payment or franchise fee.
How Hard Do I Want to Work?
The answer to this question should be, “As hard as it takes.” You will have the tools to succeed, if you are willing to put in the effort. As a new franchisee, you will usually find that the franchisor already has a system in place to help you succeed. Franchisees do not really work from 9am-5pm or from any set times for that matter. Franchisees balance their work with other obligations, such as raising children, studying or caring for an elderly member of the family. There’s no full proof recipe for success, but you will slowly see the fruit of your hard work and besides you are never alone, you will always have the support from the franchisor.
What is the risk of franchising?
When starting a business there is always fear. Franchising is less risky, but it still involves investing money. It is not cheap to start a franchise and the franchise owner will have to pay an initial franchise fee. Each franchise fee differs, but it’s always going to be a significant one. The reason for this fee is that you pay for the rights to use the franchise brand. You do not start your business alone but the franchisor will assist you with products and services that you need to run your business. You can also expect to pay royalty fees that are usually paid annually. Each franchise will have different structures in place. You will find one franchisor asking for 13.5 percent of the year’s total sales. Other franchises will ask for a lower percentage of total sales in addition to a fixed amount.
Who Will Train My Employees?
Employee training will be up to you, but most franchisors will have a solid training plan in place. Use the established plan of the franchisor as a base. Remember, the franchisor won’t want you to fail, so you may use the guide to train your employees. The face of your operation will be your employees and you want them to get it right from the start.
Starting a franchise does not guarantee success, many franchises have failed before, but steps can be taken to improve your chances of success. Hard work, sound business strategy, research, and training will guide your franchise towards success. The franchise model provides you with a proven formula to follow. Without the headaches that start-up businesses have, it’s a great way to go into business. Want to be your own boss? Learn more about SilkSense and its distributorship.