Make Money Online with Franchising

16/09/2018 18:00 | Start a business

Make money online

In recent years, more and more online businesses have adopted the franchise model. Though they do so for many reasons, one of the most important is that it is often hugely profitable. Here, we take a look at how you can make money online by following our 10 step guide to starting an online franchise.

How to make money online

1. Distinguish types of online franchise

There are numerous different types of online franchise to choose between, each of which will offer franchisees something different and require unique qualities and attributes. For instance, an online marketing consultancy will involve a great deal of customer interaction and depend on excellent communication skills. A web-based retailer will need to be well organised and have a good understanding of sales techniques. An online magazine franchise will be looking for individuals with a keen eye for graphics, a good story, and potential advertisers. If you work out what the differences between online franchises are, you should be able to determine who they appeal to and which one is right for you.

2. Choose your preferred work structure

One of the great things about online franchises is that they're very flexible. Some franchises offer part-time roles, and some franchises require you to work full-time. There are those that allow you to work from home and those that require office space. To get the most from an online franchise, you need to know how you want to work and what your priorities are.

3. How much support do you need?

Not all franchisees offer the same level of support. Some will guide you through the entire setup process. Others will provide you with training, the necessary digital systems, and then let you get on with it. Different franchisees also require different amounts of support. Some franchisees are more independent, and others prefer a little guidance. If you're not sure what the arrangement with a specific franchisor is, contact them and discuss the issue they'll be more than happy to talk about their franchise package.

4. How much do you need to earn?

If youre looking to make money online, it's helpful to know how much money you want to earn. Different people have entirely different conceptions of what constitutes a lot of money, enough money, or too little money, so you'll need to define your expectations to avoid confusion and disappointment. Your relationship with the franchisor is not going to get off to an excellent start if your idea of a "healthy profit" is considerably larger than theirs.

5. Completely online or semi-online?

Some online franchises can be run entirely from a computer. Others are part online and part offline. For instance, Etyres are the UK's leading online tyre retailer, but they also offer a fitting service that utilises van-based mobile mechanics. Alternatively, Platinum Business Partners is an online retailer, and their entire operations are carried out in the digital sphere. Knowing which type of franchise you prefer is essential if you want to make the most money possible from your online franchise.

6. Do you want to go solo?

Theres also a decision to be made about whether you want to start a business that you can run on your own or whether youre happy to start a franchise unit that requires a small team. While hiring staff is more expensive, it ensures that youre more productive, that theres a greater potential for profit, and that youve already got the human resources necessary to grow and expand at your disposal. However, if youre willing to wait to expand or are content keeping your business operations relatively small, it may be best to go it alone initially.

7. Do your research

No business venture should be started without first conducting some very, very thorough research. This is essential to successful investment, and it's highly unlikely that you'll make a sensible and profitable decision if you enter into a decision without the necessary information. This means going back through the franchisor's financial history, examining the current status of the business, and ensuring they have solid plans for the future. Don't be afraid to turn every rock over after all, this is your future you're talking about so make sure you know who you're going into business with before you take the leap.

8. Talk to existing franchisees

As well as looking into potential franchisors histories, its necessary to contact franchisees and talk to them about what you can expect from the franchise. This means discussing what support you're likely to receive, how much you can expect to earn, whether the franchisor is as trustworthy as they make out, and how long it will be until your profitable.

When talking to franchisees, its important to remember that some individuals will naturally be more negative about the franchisor and others are likely to put an overly positive spin on things. This means that you want to be looking for an average and that youll need to talk to as many franchisees as possible.

9. Do your due diligence

Due diligence is the process by which you collect and process information that can tell you whether your franchise is financially viable and whether the franchisor is exaggerating the potential of the business. To perform due diligence, you'll need to gather historical financial records, ask for financial performance projections, and investigate whether there is anything that suggests the investment is risky.

10. Make money online

Finally, if you're going to make money with an online franchise, you'll need to commit and sign the franchise agreement. This can be an incredibly nerve-wracking time, and it's often a tough decision to make. However, if you've done your research, performed the necessary due diligence, and feel happy that the skills required to become a franchisee, all that's left to do is sign on the dotted line!

 

Online franchises are diverse and come in a wide range of shapes and sizes. While one type of online franchise may suit you perfectly, another might prove to be a horrible fit. This means that you need to make sure you know what you want from an online franchise. It also means that you need to do the necessary research to ensure that your chosen franchise is right for you. Once this is complete, you're on your way to owning a money-making online business.

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