Everyone wants to start their own business, but there are so many hurdles that come into the path of starting a business and let the business to success in the market. Buying a franchise could be the best option for you because buying a franchise can be a much safer investment than starting your own business.
What is franchise Business?
A franchise is a type of business in which the franchisee buys the rights to distribute the goods and services of another company (the franchisor) and to use its business name under the terms and condition of the franchiser.
When you start a franchise business, you are buying the rights to use a proven business model with products, proven prices and marketing techniques. While this has its advantages, there are some disadvantages to franchising. So Before buying a franchise, you must consider some factor to decide if it’s right for you or not.
Five Things You Must Know When Using Franchise:
1. Demand:
Before starting a new business, you should have research about product’s demand, about the location where you want to offer this product, be wary that what sells well in other location may not be equally well-received here. It’s better to do proper research before grabbing the opportunity
2. Track record:
It is important to know what the company’s current track record is. It is not necessary that a company offers franchising opportunities are worth taking up. You should look for the company who have proven themselves successful at franchising their business.
You can also speak to current franchisees about their experience so you will get a clear idea of whether you should invest in the franchise or not.
3. Investment:
Buying a franchise is like starting your own business where all your money invested in your business operations, goes to the franchisor as fees for training, equipment and licensing rights. This figure can vary from a few thousand rupees to a few million. Also, you should look at what the franchise company will be providing in exchange for the franchise fees and how much time will take to earn your upfront costs back to determine. So you should choose a low investment franchise.
4. Competition:
Choose the franchise and product which has low competition in the market, as it will be hard to establish yourself, if there is high competition in that market. Competition doesn’t matter if the product is unique but if the franchise is a well-known brand, there may be lots of franchisees present in that particular geography.
5. Training:
It is advisable to choose a franchise that offers extensive product training, In case you don’t have business experience. A big advantage of having a franchise is the training and support offered to franchisees by the company. Various companies also provide ongoing and technical support, even after a franchise is up and running. A franchise will succeed if they get proper guidance and training.