newsletter article for ownafranchise.co.uk
Steps to Start a Franchise Business
Most of us, at some point in our lives, wonder what it would be like to be the boss and run their own business. One of the easiest methods to start a new business is to purchase a franchise. In fact, some people become so successful that eventually they purchase other franchises.
If you are considering a franchise, the steps to starting your new business might not be crystal clear. After all, you are a beginner. Where do you start? What sort of business is right for you? How do you get financing and a building?
Follow these important steps to success in being a franchisee, learn the lingo, and know the market. Soon you will join the other 1,025 new franchise business owners each year in the United Kingdom that have found success. According to the NatWest UK British Franchise Association Annual Survey of Franchising 2004, UK franchise industry is now worth £9.1 billion.
Gather information and do your research
Pick a realistic business opportunity that meets your needs and your goals. Do this by gathering information from various sources and researching like your success depends on it — because it does! Research the company franchisor that you choose, including their background with the British Franchise Association (BFA). BFA is the sole form of independent accreditation for franchising in the UK.
Have realistic criteria and expectations
Do not bite off more than you can chew. If you are not able to take out a loan or invest £100,000 pounds, think realistically and base your business choice on that. While Papa John’s Pizza, named UK Pizza Delivery Operator of the Year in 2004 and 2005 by the Pizza, Pasta and Italian Food Association, might gross more than the Benjys sandwich franchise chain, the minimum total investment is a difference in £15,000 for Benjys or a whopping £200,000 for Papa John’s. Also figure in the income you need to sustain working full-time on your franchise. If you need to make £20,000 per annum to supper on the table, do not choose a franchise that only brings in £15,000 per annum.
Getting the start up funding
There are various sources, such as a bank, a loan centre, or a personal friend, to look to for start up money. According to British Franchise Association, “Good franchisors can also help secure funding for your investment.” Some franchisors offer discounted supplies in bulk for your business operations. The first step to deciding how to cultivate a lender will be to check your credit report at a website like freecreditreport.com. Depending on if you have good or bad credit will determine your annual percentage rating, or if you are even eligible for a loan. Without start up funds a business cannot come off the ground.
Be receptive to opportunity
If research leads you somewhere you thought it might not have, be receptive. Maybe you never thought of owning a café but a franchisor gets in touch with you because your location and investment amount is ideal to start a Coffee Republic. Maybe this is actually a better fit, although you expected to be matched with a cleaning franchise.
Be confident in your final decision
When you get the loan, sign your lease and obtain a franchisee license. Do it with confidence. Make sure you have made a solid decision that you are comfortable and secure with. This new business is your job, your life, your entire efforts for years to come.