Franchising in a Nutshell: The Basics of Starting a Business Chain
When looking to start or create your own business, you have to ask yourself one central question. Are you trying to create something entirely unique? Or are you looking to invest and open up a franchise?
Franchises are a fantastic investment because they remove a lot of the stresses and troubles that an average small business would have. While there is a large investment towards getting your franchise, you can typically make this money back in a few months. That being said; however, you have to be able to survive financially for those first few months until you can start turning profits. Are you looking to start a franchise? The reward is great, but the amount of work required in the beginning will be quite a lot as well. Here are some of the basics of starting a business chain.
Choosing the Franchise
First comes first, and with a franchise, the first question is, what license are you going to get? Simply put, a franchise is just a license given to you by a corporation to sell and use their products as their own. You get all the benefits that the corporation provides, and they will help set you up, as well.
Choosing your franchise, however, can be quite a difficult task to make. It comes down to looking at your budget and looking at the profitability of each franchise. No matter where you are in the world, there are plenty of franchises that you can open up. You first have to take a look at your city to see what is available.
The list of franchises in London will be vastly different than the franchises in New York. In London, for example, you have to consider all the UK franchise opportunities that are available. Larger corporation franchises that are incredibly successful will be much more expensive to license than a smaller corporation’s franchise.
You will need to look at each one, look at the cost, and compare all the financial sheets and information regarding the two. From there, you can begin to make an informed decision about which franchise you would like to license. Once you have done that, prepare your sales pitch, as it is time to apply for a license.
Getting a License
Now that you have decided on your franchise, you have to go about getting the license from the corporation. This can be quite difficult as you have to convince them that you are trustworthy with their brand. Whenever a new franchise gets opened up, the corporation’s brand and reputation are on the line. If your store were to fail, people would turn and blame the corporation as opposed to you. This is why you have to show them that you are fit to run one of their stores and will do a successful job of it.
Come with business models, plans, and any information that you deem relevant to show them.f you come in empty-handed, you will look unprepared, and that will reflect on your ability as an owner to handle a franchise. Just remember to calm down and treat it like a job interview. If all goes well, you will walk out of there with a license ready to open a store.
Now that you have your license, it is time for the corporation to equip you with the tool for success. Even if you have business knowledge, the corporation will put you into a training program teaching you how to run their business and what you can do to ensure your success. Along with these training programs, they will also have plenty of different reference materials that you can access to help you along the way.
Construction and Location
Now that you received proper training on how to run a franchise, it’s time to construct the franchise. There are staff members who work in real estate that will analyze the current market and help determine the best location for your franchise. Once you agree to that spot, they will work with the real estate agent to get the lowest possible price for it. This allows you to keep land costs down while also being put into an area that is destined for success.
Once the outside is down, it is time to fix up the inside. The dedicated team will share with you several models that they use to design stores and will make some recommendations based upon the shape of the store and how you want it to look. You will be walked through every aspect of the construction and location process and will be asked for your input as well.
It’s now time for you to hire slime employees to fill up your franchise. The great thing about owning a franchise instead of a small business is that it is much easier to attract people to come work for you. Because you are part of a large brand, people recognize you and will apply. You will have a great selection of people to choose from, and you can ensure that your store is ready for anything.
As mentioned above, these corporations are putting their brand and their reputation on the line by giving you the ability to operate your own franchise. To see that you are doing a good job, they will continually check in on you to see how the store is running. They have dedicated staff specifically designed to do this and to help you.
Always remember that you are never alone with these programs. While you might want to try and do everything by yourself, you don’t need to. Simply call up a representative and take advantage of the free resources and advice they have for you. They will not only listen to you but assist you and help your franchise grow into something far more significant.
By following all these steps, you’ll be able to create an excellent business chain that will last for many years to come. As time passes, you’ll soon be able to watch your business grow as you sit back and collect the money that it makes. Good luck with your franchise, and remember to enjoy every step of the process.