Business Franchise Australia

Strategies to determine the best franchise

One of the safest ways to venture into business is to buy a franchise. The reasons being that franchises are part of a broader, established business with operations manuals, training procedures, marketing plans, and branding already known to the public.

I am privileged to work with businesses around Australia, and, in my experience, franchise models are easier to get started in, as the majority of hard work has already been undertaken by the franchisor.

If you’ve decided to explore a franchise business, you still have another question to answer. Which franchise is best for me?

The different industries in franchising opens up multiple opportunities for a franchisee, which is both exciting and daunting. Determining which franchise would best suit you, your skills, interests, and financial goals is not as easy as listing some pros and cons. This article will provide you some strategies to identify the franchise that best aligns with what you want and need.

 

Set your compass

Like in every goal you want to achieve, it is vital that you know what you want and assess what you can do to achieve it. This self-assessment is where you determine what you want to achieve, how your skills can contribute, and how your personality will fit into the franchise.

 

Understand your strengths and passions

It takes a lot of commitment and eagerness to start a business. What aligns to your aspirations and goals is where you want to start in choosing a franchise. It’s not about starting any franchise business, rather, knowing what kind of franchise is congruent with your values, and will keep you motivated and happy day after day. 

You can always learn new skills, but your mindset, attitudes, and psychology are your business capital. It may not be associated with a degree or certification, but the biggest factor you bring into the franchise business is yourself. Identifying what you are good at and understanding your personality on how you deal with situations and people is an integral part of selecting the right franchise. 

 

Financial Health Analysis

What’s your budget? How much can you afford? How much are you willing to invest? This is where you establish your financial capacity to determine how you initially purchase your franchise, and what your ongoing cash flow will be like.

If the franchise is brand new, what are your expected earnings? What are the average profit margins? If the franchise is already operational, review past performance to determine the earnings, expenses, and what’s left for you, the franchisee. Once you’ve taken into consideration your financial obligations and future expenses, you are left with your financial capacity. 

 

Finding your match

Now that you have a clearer understanding of what you want, what your strengths are and how much you need to start; it’s time to identify which franchise best suits you.

Your market research could begin where your franchise location will be. You’ll want to know the trends in the location and the demand for projected growth. Being aware of what is happening around your selected location will help you figure out what type of franchise aligns with your interest, financial capacity, and growth opportunities. 

Another research component is to determine the right franchise model for you. You may have narrowed down your decision to a type of business or industry, but you still need to determine which franchisor best matches your requirements. Take the time to observe how the existing operation for the franchise works and how the franchisor deals with its franchisees and customers. Seeing how the franchisor operates and runs the franchise will give you a glimpse of how things will work once you’ve started.

 

Safeguarding your investment

Don’t underestimate the power of professional advice, particularly from lawyers and accountants. From a legal perspective, it is crucial that you understand the relationship between you and the franchisor, the franchise system and what owning a franchise entails, the potential risks and rewards. An accountant will be able to help you establish the best business structure to distribute your wealth, whilst lawfully minimising your tax exposure.

 

Overcoming challenges

It won’t always be smooth sailing owning a franchise. You will most likely face challenges, some bigger than others, but don’t shy away from seeking help. As well as guidance from your franchisor and other franchisees, you should also consider advice from a business coach, human resources consultant, local area marketer, and/or business broker, as these professionals can provide recommendations tailored to your franchise, the situation, and yourself. 

 

Summary

Getting into business for yourself is a big decision, that is made a little easier when you head down the franchise path. Selecting the right franchise is also an important decision, hence it requires plenty of due diligence. I’ve seen too many people make the wrong business decision because they were impacted by emotion, or cut corners during the due diligence process. Instead, slow down, be thorough, and spend time up front to ensure that the franchise you select fits your criteria.

 

Tony Meredith Coaching focuses on helping business owners Grow Sales, Increase Profits, and Regain Time. Tony Meredith Coaching started in 2018 and works with hundreds of small-medium businesses across Australia, in the areas of Franchising, Retail, Services, Manufacturing, and Trades. Tony has over 25 years’ experience working for some of the world’s largest corporations in a variety of senior sales and leadership roles. Contact Tony and his team if you want to grow an outstanding franchise business.

Email info@tonymeredithcoaching.com.au | Website https://tonymeredithcoaching.com.au/