Many of us have dreams of owning our own business. We opt for a franchise model because rightly so it offers some advantages over starting your own business venture from scratch. But buying a franchise per se is not a guarantee of success. It is after all still a business that you will need to operate and so it’s vital that you have a good understanding of the business you are buying.
First off, there are several questions you need to answer when confronted with the challenge on how to start a franchise.
Product or Service
What are you going to sell? Is there an ongoing demand for it or is it a fad that might rise in popularity while it’s new and then come crashing down? Is the product or service attractive to the people in your franchised territory? Is working in this business something you can see yourself enjoying and really putting in the hours and effort?
You need to consider all these before you decide to buy a franchise.
An estimated profit of $495 million for the year 2014-2015 and a 9.2 percent growth rate per year (as reported by IBISWorld statistics) – that’s how much the child care industry in Australia is expanding.
The franchisee-franchisor relationship is unique in the working world. It’s not like that of an employee and employer, where the employer is considered to be ‘the boss’. In a franchise relationship, the franchisee is effectively their own boss.