For many New Zealanders, owning a franchise is a reliable path to business success. It’s not for everybody though, so the decision to enter a franchise needs to be approached carefully. You will need to take expert advice: your accountant, lawyer and banker should all be involved in the process of helping you choose a franchise, preferably from an early stage.
It is also important to evaluate more than one opportunity in the industry(ies) you may be interested in, by making contact with and comparing a number of systems. Ultimately though, only you can decide whether a franchise is right for you.
Some key considerations are as follows:
· Your personal goals. How well does the franchise work with what you want to achieve?
· Your personal values and interests. How well does the franchise fit with these? Is it a business that you will enjoy operating day in day out for a number of years? A successful franchise also needs a substantial investment of enthusiasm, hard work and energy. Are you ready to provide it?
· What are the rules of the business? Most franchises operate under a set of very specific rules, which you must fully understand and be comfortable with before signing a Franchise Agreement.
· The level of skill involved in running the business. How well do the skills required in the business match your own capabilities? Most franchisors provide ongoing training and support for franchisees, but there will very likely be learning curves. Are you ready and willing to learn?
· Your ability to manage staff. Many businesses are built on the strength of having good people. You have to be able to get good staff and keep them. If you have never managed a team of people before, it can take some getting used to.
· The type of customers you will be dealing with. Are they the sort of people you will enjoy dealing with? Are you ready to meet and exceed their expectations?
· The operating hours of the franchise. Some franchises are seven-days-a-week operations and involve long hours. You will need the support of your partner/family to make a franchise work.
· The physical demands of the business. Self employment is a challenge and many franchisees find that they need to be jacks of all trades for at least some of the time. Are you ready to meet the many and varied demands that your business may make?
There are many other factors to consider when choosing a franchise. Always seek professional advice and information before buying a franchise.
Article provided by Linda Grant, Franchise Development Manager at ANZ.
This material is for informational purposes only.
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