The summer break’s often a time when people decide they are ready for a change of career direction. That might mean looking for a new role but it might also mean considering setting up their own business. If that applies to you, and running your own business is something you’ve been thinking about, you might be wondering if a franchise could work for you. We discuss where to start with your franchise research and what important points you need to assess along the way.
Taking on a franchise can be an ideal way to run a business, blending autonomy with a proven business framework. But what’s the best way to get all the information you need to assess if it could work for you? Here are some tips to help you get your franchise research underway.
1. Start with some self-reflection
This can be harder than it first sounds. Being genuinely honest with yourself about your future career aspirations isn’t easy. Be realistic about your personal circumstances and what you hope to achieve out of your career move. What are your interests? What could keep you engaged and motivated over the longer term?
Think about your skills and how readily they can be transferred to running your own business. Are you keen to go it completely alone and do you like the prospect of setting everything up from scratch? Or does the idea of a franchise, with the balance of autonomy and support it offers, feel like a more appealing way to become your own boss?
2. Consider your financial aspirations
Spend time early on assessing both your finances and timescales. How quickly would you hope to launch your business and how soon will you need to take income from it? What are your initial thoughts about how much you can invest? You’ll need working capital, which could be covered by funds you already have or taken from a business loan, as well as enough money to cover daily living expenses until your business is sufficiently established and you can take an income from it.
This analysis is something you’ll do in more detail as you get a better idea of what’s involved in franchising, the potential franchise options available, and the funding needed for specific franchises you’re interested in. But some franchises will require an investment of a few thousand pounds; others require hundreds of thousands of pounds. So it’s worth considering this early on as it will guide the focus of your franchise research.
3. Keep an open mind about potential sectors
Don’t assume you can only run a business in a sector where you already have experience. If you want to explore moving into a new sector, taking on a franchise could be the ideal way to do it as you can tap into your franchisor’s expertise and knowledge straight away.
Once you’ve identified possible sectors, look at franchise opportunities available within them to see if they feel like a good fit for what you’re looking for. Also look at any direct competition that’s already established. It isn’t necessarily a problem if there’s still capacity in the market for what you’d be offering, but make sure you have an idea of who else is out there and what they’re doing.
4. Use well established online resources
There are several websites with useful introductory resources about what’s involved in franchising. They’ll also provide you with details of available franchise opportunities once you’re ready to do a more specific search. Be aware that the franchise industry has been targeted by scammers so keep that in mind when viewing opportunities. We’re an accredited franchisor with the British Franchise Association; their website can be a good place to start along with sites such as What Franchise.
5. Evaluate the level of support provided
One of the key benefits of franchising is the support offered by the franchisor. But the support on offer will vary from initial training only to ongoing operational assistance, regular marketing support and advice. And smaller franchise operations tend to feel more personal which you may or may not prefer. So it’s useful to think about the type and extent of support you’d like to have. As time goes on, and as your franchise research becomes more focused around certain franchisors, this will help you identify those who are more likely to fit what you’re looking for.
6. Meet franchisors face to face
Meeting franchisors and franchisees face to face is a brilliant way to get a good feel for individual franchise offerings.
Franchise exhibitions and events provide excellent opportunities to meet franchisors and network with other franchisees, potential and actual. You can ask all the questions you have while also getting a sense of what the team is like and how you would feel working with them.
Franchisors will often also hold discovery days or similar events, giving you the chance to visit their head office or one of their sites. These events give you even more detailed insights about the franchise, the costs involved, and ways to obtain funding. You’ll also find out more about the next steps required to start moving forward together, such as creating a business plan, if you decide their opportunity looks like it could be right for you and you want to take it to the next stage.
Could running a franchise be for you?
We’re attending the National Franchise Exhibition at the NEC Birmingham on October 4th and 5th. So if you’re considering whether franchising might be for you, please do come along and have a chat! Click here to book your free tickets.
