4 things to ask yourself before choosing a franchise
If you’re considering buying a franchise in the UK, it might feel tough to choose between the myriad of potential opportunities out there. So what should you look for when buying a franchise?
How interested am I in the business?
“Follow your passion” might be overdone in terms of business advice, but there’s no denying that if you head into your franchise completely un-interested in the industry, you’re giving yourself a serious handicap to overcome.
You don’t have to be fanatical about your chosen franchise, but you should at the very least be a customer. Otherwise, how are you going to understand what the customers like and dislike, and what makes a company succeed in that market?
Is there a real opportunity?
Let’s say that you’re considering opening a coffee shop franchise in your local town. You need to make sure that there’s an actual demand for it first, and that the demand isn’t already being met.
For instance, does your local town’s shopping centre already have three coffee shops? Or is your local area so quiet that you can’t make up the numbers needed to give you a profit?
Do the market research in advance, and make sure there’s a genuine opportunity to make money before you dive in.
Do I have the relevant experience?
Taking charge of different franchises will require you to have different experience levels. Running a gym, for instance, is a very different experience to running a high-end restaurant.
It’s nearly always better to look for a franchise that meets your skillset.
You don’t necessarily need to have experience in the industry to succeed; you’ll be able to carry team leading and other management skills across multiple fields.
However, you do need to make sure that you have the skills necessary to fulfil whatever the main tasks you’ll be required to complete are.
Do I think I’ll be happy working with these people?
Always make sure you meet face to face with the franchisor. Whoever the franchisor is will be your point of contact with the company overall, so make sure they’re someone you’d be happy working with.
Whether you own your company or not, you don’t want to be stuck dealing with someone you feel you can’t do business with.
Relationships matter when doing business.