subject: Assessing Franchise Opportunities – Advice at the Outset from Nigel Mayne [print this page] Assessing Franchise Opportunities Advice at the Outset from Nigel Mayne
Taking on a small business franchise as the recession eases may be less of a risk than you think. It is certainly easier in a recession to find the better performers and the strong brands, as well as a product or service with a demand that is still growing and will outlast your long term exit strategy.
The franchise business model can get you established and profitable in a shorter time than other small business ownership options and industry experience is not a requirement. Other benefits of the franchise business model are that the franchisee has the proven marketing and support systems of the franchisor and the contractual process allows for a level of transparency that minimizes the risk of business failure for many of the same reasons that other small business ventures may fail.
There are many traps for the unwary new investorinsufficient startup capital, a lack of general business acumen, not understanding the level of commitment required and its effect on family life, and a failure to be alert to promoters practicing various forms of commercial fraud.
Is a franchise business opportunity right for you? If you can share the passion for the brand with the franchisor, understand the need to build a team following the proven system and procedures and focus on building sales in your territory, then success is likely to be mutual. An honest self evaluation of your potential business skills should come hand in hand with your evaluation of franchise leads. Most franchise companies now have systems to assess the potential, qualified franchisee. They are looking for the best fit just as you are. The franchisor wants to ensure that you are financially sound and highly motivated, with both leadership and management skills. Also, your background, work ethic and personality are all attributes important to the franchisor. This initial period of mutual assessment is vital to both parties.
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