These are just some of the things I learned when the company I work for started franchising the business in 2004. I was fortunate to have been given a chance by my boss to be included in their first franchise team.
Ask yourself: Are you ready to be a franchisee?
Getting into business is no joke. It entails a lot of hardwork, experience, people skills, sharp wit, endurance and money. If you are afraid to take risks, this is not the way for you to go.
Do you have money to invest in business?
It’s easy to buy a franchise and open it. But the tedious day-to-day operations in your first and second year in the biz is what would fry your brains and eventually, at some point, dry up your cash and wear you out.
If you’re not really financial liquid, you may seek potential business partners, people you know who are financially equipped, share your interest and are trustworthy. If you worry about the dangers of having relatives or friends for partners (I’ve seen relationships broken because of business), go to the bank for financial assistance a.k.a. loans.
Find a business that you are most passionate about.
Whether it’s a simple food cart selling siomai or an elaborate fashion boutique, it is important that you have the passion and experience needed in running the business.
Location! Location!
Location is the heart of every business. Where you plan to place your outlet could either make or break your entire biz plan. Find a suitable place for your type of business. If you plan to open a restaurant, consider going to malls or at any town centers ready to supply you with customers. Conduct a feasibility study in your chosen location. Do traffic count in neighboring establishments that carry similar product line. Check the business potentials of the trade area by finding out where the market come from and areas where they converge. (Are there subdivisions nearby, condominium units, malls, churches, hospitals, schools or bus/jeep terminals?)
Here’s a time-saving tip when scouting for potential locations - find where their competitors open their outlets. That’s the place where you can start conducting your study.
Before you spend your moolah, do background checks.
When you have spotted the business you are interested to invest in, investigate. Find about the franchisor’s experience in the field, number of years in business, operational capabilities and financial performance.
Know the core products. Do people rave about it? Do you use their products? Do you believe in them? Visit their outlets. Meet their staff. Observe how the business is operated. What are the strengths and weaknesses of the franchisor? Are there persisting problems you think could pull you down also when the mothership sinks?
Find out what their customers say about the company. Are their customers happy and satisfied with the product and type of service? These are tell-tale signs if the business is stable and profitable and has a loyal following.
