FINDING THE RIGHT FRANCHISE IN THE PHILIPPINES
Any entrepreneurial project involves a risk that calls for preparation and the drive to succeed. Whether it is a start-up business or not, the operation continues till more innovations take place. The same is true with franchising. It is a fantastic company that opens the path for aspiring business owners to compete and flourish in the market of today. The major reason you must initially make a wise choice is that it may change over time to meet consumer needs. Therefore, how do you pick a franchise?
Mins to Read: 7 minutes
Success in franchising takes only 20% skills and 80% goes to the mindset. If you want to be successful, it is not all about your knowledge and skills. It is mostly about the mindset — having the courage and learning to take a risk that can cause a failure when starting a franchise and focusing on the goals you want to achieve in the future.
1. Do your own research
Make sure you know exactly what you’re searching for before you even begin your search for a franchise. Consult friends, read as many franchise reviews as you can online, and go online. This will give you a clearer understanding of what you desire and what you should stay away from.
2. Consider your lifestyle
Think about what kind of lifestyle you want. Do you want to be working from home? Is being on the road important to you? Do you want a lot of autonomy or do you want a more structured environment?
3. Define your personal goal
Everyone’s reasons for starting their own business are unique. Consider your goals before considering opening a business or purchasing a franchise. Do you want to advance your career as an entrepreneur, spend more time at home, or generate money?
It is simpler to establish whether a franchise is a good fit to assist you in achieving your particular goals after you have identified them.
4. What kind of industry do I want to work in?
It’s not just fast food chains and coffee shops that have franchises. Almost all product or service categories use this type of organizational structure. You can run a franchise in a variety of industries, including health and wellness, janitorial and cleaning services, tutoring and college prep, restaurants and retail, and many others.
5. Decide whether you want to launch a franchise or a small business.
Here, you must choose if you are prepared to start a small business from scratch or to become a franchisee. Comparing the two ideas, a franchise is owned by a franchisor, and in order to join that franchisor’s existing business, you must pay a franchise fee in order to become a franchisee. By relying on the franchisor’s oversight and track record of success, you are guaranteed a tested business plan that operates in the market. A small business owner who is starting from scratch, on the other hand, has yet to establish the business model and test it through time on various business management issues. Furthermore, unlike franchising, where all choices are made by the franchisor, you are not impacted by any decisions made by a superior. This does not exclude you from expressing concerns and other information to the franchisor, though. Just that once you propose your ideas, they always get the last word. In the grand scheme of things, not too bad.
6. What are my personal strengths?
The best franchise owners work on the tasks that suit them and look for ways to outsource or distribute the tasks that they might not be skilled at or have the time to complete. Being an expert in everything is not necessary. Delegating work to staff members or even external firms that handle things like accounting or bookkeeping shouldn’t be a concern.
7. How’s the support system for franchisees?
A successful franchise requires a strong working relationship between the franchisor and the franchisee as well as a vibrant network of franchisees that would allow for shared expansion.
Through these connections, a new franchise could discover the essentials for expanding a company and realizing its full potential.
8. Consider your budget
Your top priority should be to only buy what you can afford. You might overlook the numerous additional costs that are not mentioned in many franchising marketing brochures in your desire to get started. Rental deposits are typically the largest monetary outlay that is not included. The amount of working capital required is another expense that is commonly overstated or ignored. It often takes longer than the optimistic projection for a business to generate up enough sales. You must have enough cash on hand during this period to cover losses in running costs including labor, rentals, and utilities. Last but not least, remember to account for taxes like a value-added tax (VAT), which you must pay if you are registered for VAT regardless of whether your business is profitable or not.
9. Consider your work schedule
Do you need a firm schedule or are you the kind of person who can work flexible hours? Think about the impact this will have on your work schedule and whether the franchise you’re thinking about is suitable for that kind of lifestyle.
10. Check the management’s integrity and competence.
Do your homework on the franchise’s managers’ reliability. In order to avoid becoming the next victim, find out if they have ever engaged in any morally repugnant behavior, like dishonesty. The corporation taking up desirable places suggested by the franchisee is one indication that there may be issues in this area. Likewise, research the management and business’s track record. Do they have a lot of franchises? When did they start doing business? One of the reasons you buy a franchise is to acquire professional help running the company, which would be difficult to get if the team was led solely by inexperienced people.
11. Be wary of those who use pressure tactics.
Any franchisor should attempt to market its franchise, but there is a point at which the aggressiveness raises red flags. The top franchisors have a large waiting list of candidates and are more concerned with finding good candidates than with selling to them. Take extra care if you are given significant discounts in order to close the sale right away.
12. How was the franchise’s performance throughout the pandemic?
The pandemic served as a true test of a company’s capacity for innovation and adaptation, and educator services were no exception. The ability to learn from setbacks and apply those experiences to future-proof the company is a mark of a solid franchise. A company ought to be able to shift and streamline its procedures, including hiring, online by this point.
13. Purchase only from a franchisor with a well-known brand or a hard-to-copy product or service.
Despite all the benefits of purchasing a franchise, it might be difficult to justify splitting a sizable portion of the profits unless their brand name can attract far more people than you can with your own marketing efforts. If a brand is unheard of, it might be a smart investment if its goods or services have distinctive characteristics that make them difficult for rivals to imitate. If the franchisor doesn’t have a distinctive brand or an original product or service, you could be better off creating your own company and hiring a business consultant only if you feel you need one.
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