Franchising: Your first steps

For many people looking to start their own business, moving into franchising is a tempting prospect. It gives you the chance to be your own boss but with all the support and experience of an already established brand to help you out. While it still requires hard work, opening up a franchise can be a very lucrative avenue if done correctly.

If you are thinking of choosing the franchising route yourself, here are a few points to help you out.

1.Initial research

The first step to take is to investigate online what franchise opportunities are available in business types in which you are interested. It is important to choose something you are passionate about, rather than something that is just the latest trend. You will also need to get the information on the costs involved and the guidelines you will have to adhere to when running the business.

2.Think about your funding

Once you have decided on the franchise you are keen on you will need to consider how you will fund the set-up costs. Of course, if you have enough money in the bank, then that is resolved, but you may need to think about a business loan if not. There are a few options here from traditional bank loans to business start-up loans. Do your research on which option is best and get the necessary paperwork completed.

3.Consider the new premises needed

Once you are all ready to go with your franchise agreement signed, you need to consider new premises from which your franchise can operate. For many new franchisees, leasing is the best option as it has lower upfront costs and less risk. Many companies in America, including On Point Executive Center, offer franchise owners access to executive grade office spaces.

Many of these companies will allow you to book office space as and when you need it or in a virtual sense if you need to use them as a business address. Even better, you only pay for what you use, and the flexible contracts can be for any period from a week to one year.

4.Follow the system

All successful franchises that you work with will have a specific system that you must follow. That is the blueprint for success for you and the steps you need to take when setting the franchise up. Don’t be tempted to deviate from their system!

5.International franchises and expansion

It may be that you fancy running an international franchise with the parent franchise based in a foreign country. Alternatively, you may think of expansion overseas once your initial franchise store or stores have become established. For either of those options, take the time to research what additional factors may come into play. You may need to compare international money transfers to send payments out of the country or even make physical trips abroad at certain times.

Setting up a franchise – take it slow

If you are thinking of entering into a franchise agreement, then take your time. That will allow you to make sensible decisions regarding choosing the right franchise for you and the correct business premises or office space to lease. Be sure to follow the franchise system, and you will be well on the road to success.