Buying a franchise, to most people, appears to be a secure safe way to enter small business and it can be. However, before you go down the path to purchasing a franchise you really need to think – WHY?
“Why am I buying a franchise?”
I wish that I had really looked deeply into the real reasons I wanted to buy a Franchise, before I actually did dive into purchasing!
To really know your WHY, you need to think about what it is that you really expect from franchising.
When enquiring about a franchise system ask the Franchisor if your expectations are realistic within their system then don’t just take their word for it. Check with existing Franchisees in these systems whether your expectations can be a reality or just a folly.
Some typical “expectations” or “WHY’s” people have before they buy are:
Freedom from 9 – 5
The number one reason most people consider a franchise is freedom from the 9 – 5 grind. They are sick of the boss, having to turn up to work on set days, at set times. They work hard and feel they are not recognised for the time they put in so they look for an alternative that will give them more freedom in their life. Before you buy a franchise really put some thought into what hours do you really want to work in a week. What times of the day you want to work? Are you capable of becoming the BOSS?
I want to own my own business
Most Australians have the secret desire to own their own business. Buying a franchised business is seen by many as being a more secure way to enter small business as you are buying already existing systems and processes. Ask yourself why do I want to own my own business? What am I hoping to achieve by starting my own business?
Buying a franchise verses starting your own business is considered a safer option as you are buying into a proven business model. The franchisor will already have company stores that provide the proven business model so it should be easier for you to start your business by being part of this business model.
You love the product
You are so impressed with a certain product or brand that you want to be a part of it. You can see yourself as an ideal representative of this brand.
People approach buying a franchise with stars in their eyes; they feel it is a sure way to increase their personal wealth. Franchising is a way to build your own empire especially when you have a franchisor who is the perfect fit for you and helps you to choose sites etc. Franchising is a reasonably secure way to have multiple sites to grow an empire and build an asset base.
Also consider things such as:
- “What do I want to achieve?” and
- “What are my objectives for having my own small business?”.
Be very clear and honest with yourself. You are likely to invest a lot of money into a franchise purchase so please do enough soul searching to really get to the heart of WHY you want to buy a franchise.
There are over 1160 franchise systems in Australia. By default, that means there are plenty of systems and opportunities for you to select from. Be sure that you choose the right franchise system for you, the one that fits you perfectly and that all starts with knowing your WHY before you dive!
Elizabeth Gillam founder and CEO of Franchisee Success creates High Performance Franchisees. Having owned and operated three franchised food businesses; Boost, Healthy Habits and Bucking Bull; she knows what it takes to operate a profitable food franchise. In her recent book, Would you like Profits with That? – 6 steps to running a profitable food franchise she outlines how franchisees can ACE their franchised business unit.