Hot news this week in the business world is the increasing popularity of franchises. Millennials, in particular, are snapping them up, as an alternative to the unsettled job market.
It makes a lot of sense; in effect, you’re buying yourself a job you believe you will enjoy and, in addition, you’re fulfilling your dream of becoming a business owner. The secret to success, however, is to do your homework first.
Of course, research should be carried out before buying any business; the advantage of buying a franchise is that there are existing proven business models. It’s also perfect for those feeling a little overwhelmed by going out on their own.
Comes with a Manual
In business, we often joke about there being no manual to help us when we take over an existing enterprise. With a franchise, there is! With an operations manual to help you, you’ll save a lot of time learning about the business and will always have something to refer to when you have a question.
Not only that, but you’ll also have the backing of the franchiser, and that is invaluable. That support will help you with major issues such as training, marketing, Codes of Practice and dealing with suppliers. It will also give you the benefit of bulk buying power.
As well as receiving expert advice, you’ll probably also find that you can get help with lease negotiations and other legal matters. The franchiser can even help you find the best location. And perhaps the biggest lure of all is that it is often cheaper to buy a franchise than an individual business.
Like many Australian businesses, the past few years have been tough financially. However, we are definitely seeing growth now. In fact, the growth is such that it is enabling operators to recover those past losses.
The demand for franchised services is influenced by several factors, including consumer sentiment, interest rates and increases in disposable income. Service-based franchises serving time-poor consumers are doing particularly well.
Do Your Research
In Australia today, franchise opportunities exist in just about every industry. It’s important to choose one that you feel matches your abilities, qualifications and expectations. You should also research the future potential of that product or service.
As with any business purchase, you need to ask questions, study and get legal and financial advice. It’s still an investment that could go wrong. Don’t be afraid to ask questions, it’s expected. You might also join an organisation such as the Franchise Council of Australia. You can also find out more at www.business.gov.au.
The top franchisers in Australia in 2017 ranged from gutter cleaning, gardening and tyre fitters to coffee vans, bakeries and mortgage advisers. There really is something for everyone.
So, if you’re keen to get into your own business in 2018, a franchise might be the ideal solution.
Zoran Sarabaca is the principal of Xcllusive Business Sales
Disclaimer: Chan & Naylor takes no responsibility for the accuracy of any research material of contributors to our newsletter. Contributions to our newsletter are meant to be educational only, and Chan & Naylor does not endorse any promotional material promoted in their articles. Readers should do their own research to determine the accuracy of their material.