It’s October again, the air is cooler and the streets are swarmed with fairies and goblins. It’s scare and be scared, but is there more that’s haunting you than cavities and scary movies? If you’ve been considering owning your own franchise, there are a lot of fears that follow. How can I afford the high start-up costs and royalty payments? What if I lose years of hard earned money? Will it stifle my independence? What if I can’t meet the payroll? The list drags on.
Unlike all the fog and mirrors of Halloween themed movies, your fears about franchising are legitimate and should not be taken lightly. You need to ask several questions and receive answers from several sources to properly decide if business ownership is for you. You cannot skimp on the homework and you have to realize that your dream future doesn’t come easy. That being said, your hard work will pay off.
Most studies show over 90% of new businesses fail within the first three years. This is why so many look to franchising – risk mitigation is one of the highest motivating factors that attract entrepreneurs to the field. Starting a new business means constant trial and error with no previous experience to lean on. They fail because owners must figure out how to grow profitability and create effective products, marketing campaigns and management techniques all alone.
Franchises, on the other hand, offer a proven system that the franchisee can evolve with and maintain in their own communities. This proven system easily erases the doubt about their investment and provides the potential franchisee with peace of mind. The potential franchisee knows the concept is in high demand, and it has worked and will continue to work for them.
For those thinking it will squash their independence, you are greatly misinformed. Franchising aims to offer its franchisees with the freedom of being their own boss.
Yes, the franchisor’s proven system involves uniformity of the product, but the owner is solely responsible for keeping his or her store afloat in their city. People add their own local flare and personality and if you take your time, the franchise you choose will likely welcome your ideal schedule and encourage independent skills.
Similarly, the franchise you choose will follow the start-up costs and royalty fees that best match your budget. It’s possible to search for this on your own, or you can use consulting services, like FranNet. If you’re inquisitive and patient there are over 78,000 franchise units across Canada with a range of price points you can pick from.
A healthy amount of fear is okay – you it with a healthy amount of research and knowledge.