Five excuses for not starting a franchise
The dream of becoming the boss stays that way for many aspiring entrepreneurs because they can think of a million excuses why itís not the right thing to do.
Sound familiar? Whatís stopping you from starting your own business? Whatever barriers you envisage on your route to business ownership can appear overwhelming at first, but with a positive attitude and self-confidence, anything is possible.
Here are five excuses that are often given as reasons for not taking a leap of faith into a new life-changing adventure.
1. I want to own my own business, but I don't know where to start
If the thought of starting a business from scratch fills you with dread, you could consider investing in a franchise business model. Starting a franchise is hugely different from setting up an independent company and may not seem such a scary prospect.
When you choose to become a franchisee, a significant amount of the groundwork, preparation and planning has already been done for you. The franchisor will have spent years developing and improving the franchise system so that you donít have to.
You donít have to reinvent the wheel. No need to come up with a unique business concept or develop processes and systems. As a franchisee, youíll get to be your own boss with the added benefit of being part of an established brand with a proven track record of success.
2. I canít afford to buy a franchise.
There are over 900 franchised brands operating in the UK. And while investing in some of the biggest and well-known franchises can cost hundreds of thousands of pounds, there are plenty of options for those on a budget too.
First, it's essential though that you understand your financial position. You must determine how much money you can afford to contribute towards the franchise and how much you need to borrow. This will help you to choose the franchise opportunities that you can afford.
When you know the budget youíre working with you can start to assess different franchise options. Just remember that thereís more to the cost of buying a franchise than the franchise fee alone. The franchise fee is usually charged as a means of refunding the franchisor for the cost of recruiting and training you. But the total franchise cost will include other expenses.
You also need to consider the outlay required to set up your business including rent, insurance, and professional fees. On top of this, most franchises apply a monthly royalty fee for continued use of the franchise rights and maintenance of the franchise system. Some franchises also charge a monthly marketing fee which contributes towards national advertising campaigns.
It's also wise to consider whether youíll need an element of working capital too. This will enable you to cover business and personal expenses until your franchise can fund itself. The good news is that because many lenders view the franchise business model as much less of a risk than an independent business start-up, it should be much easier for you to secure funding.
3. I crave the security of a monthly pay cheque.
Itís one thing being able to afford to become a franchisee but another to be willing to lose the security of a monthly pay cheque. The truth is all entrepreneurial endeavours carry a certain amount of risk but starting a franchise is generally deemed less risky than other forms of business ownership.
According to the British Franchise Association / NatWest Franchise Survey 2015, only 0.1% of franchises closed their doors due to commercial failure. This is a testament to the tried and tested franchise system, the training and support that comes as part of the franchise business model.
If youíre prepared to take a risk and you believe in your abilities, you could have a rewarding and profitable career as a franchisee. You need to make a leap into the unknown and work hard, and your bravery will pay off.
4. I don't have the right skills.
Perhaps one of the most significant benefits of becoming a franchisee is that in return for paying the franchise fee, youíll get access to comprehensive training. For most franchise opportunities, you donít need any previous experience in the industry youíve chosen; neither do you need a background in business ownership.
Itís in the franchisorís best interests that you have all the support you need to become a successful franchisee. Their success relies on your success so offering an extensive franchise training package is beneficial to them as well as you.
This means that you can invest in a franchise confident that youíll receive all the technical training and business know-how youíll need to own and operate your business. Once your initial training is complete, youíll continue to receive ongoing support as and when you need it.
5. It's not the right time.
If you waited for the right time to start your own business, it would probably never happen. You need to be honest with yourself and understand if a genuine reason drives your excuses for it not being the right time or is it just fear setting in?
If you have the necessary funds to become a franchisee and you have the support and backing of your family and friends, then there is nothing holding you back. But whenever you do decide to make your business ownership dreams come true though, you need to do your homework. The importance of performing thorough due diligence is key to the success of your new business venture.
If you validate the franchisorís financial claims with a specialist accountant, review the franchise agreement with a solicitor experienced in franchising, and speak to other franchisees within the network; then now could be the perfect time to start your franchise.
The Editorial Team, Point Franchise ©
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