Stuck for a unique business idea? Looking for a developed business structure? Or perhaps you long for the market power of a well-known brand? If this is what you need to start your business, purchasing a franchise may be an attractive option for you.
If you’ve followed our guide to planning a business or career, then you will have a list of industries you are interested in. But more importantly (if you’ve been honest with yourself) you’ll have a good idea of your strengths and weaknesses.
If you want to run a business but, on self-reflection, you realize you don’t have the experience or training, there are two ways you can still launch a successful business. First, undertake a business course that provides you with the foundational understanding you need. Second, purchase a franchise.
Range of choice
Here are just some of the many
examples of franchises available across industries.
- Fast Food Outlet
- Food Van
- Home Delivery
- Parts Store
- Car Dealerships
- Delivery Services
Health & Beauty
- Fitness Centre
House & Garden
- Real Estate Agency
- Yard Care & Lawn Mowing
- Pet Grooming
- Dry Cleaners
- Home Care
- Mobility Devices
- Kids Parties
- Swim Schools
- Child Care
Franchises are sold by a parent company, who provides branding, marketing, administration, and business guidelines. All the work of planning and building a reputable name is done for you, you just need the funding and the know how to run it well. McDonald’s and Dairy Queen are obvious examples, but there’s basically a franchise available for whatever your interest. The industries are limited only by your imagination and desire, but there are a number of different types of franchise you can consider.
Choosing to purchase a franchise comes with advantages. You are selecting a proven and consistent business model with, ideally, structured business mentoring and marketing plans. While there are two main franchise types, business format, and product/trade name, our primary focus in these blogs is the former where the entire concept of the business is standardized and licensed to the purchaser (the franchisee). Business Format franchises can be broken down into either investment or location categories.
Level of investment
One way to categorize franchises is based on the level of financial or management input on behalf of the purchaser (the franchisee), and who the product will be sold to.
- B2B: These franchises negotiate services or products directly to businesses without contact with the consumer.
- Management: This involves running a head office with a team who deals directly with consumers for you.
- Retail: In this instance, you would franchise for a specific product or brand. These are usually owner-operated retail outlets in high profile areas.
- Investment: Franchises that are purchased purely for investment usually only require the owner to undertake management and advisory tasks. These require a significant outlay of money and a large team.
- Single Operator: These franchises require one person to provide services or products in a specific niche. This is a good option if you want to start small, have minimal overheads and more flexibility.
Location of your choice
Business format franchises can also be categorized by the location you choose to work from: your home, the road, or a physical address.
With low overheads and literally all the convenience of home, home-based franchise opportunities are the most straightforward options especially if you have access to quality internet at home. From holiday planning and interior decorating to bookkeeping and accounting, there are a range of opportunities available. You’ll need to be able to manage your time effectively and separate work time from family time if you are going to make a home-based business franchise work.
Do you get itchy feet? Has the travel bug got you? Feel confined within the four walls of an office? If the honest appraisal of your strengths and weaknesses shows that you get bored easily and like being in the outdoors, then a mobile business might be more your style. Food trucks, garden and home maintenance, dog grooming: there’s a mobile business for everyone. Often, these franchises include equipment purchases and provide plenty of opportunity for return customers: it all comes down to your service. Marketing is important for mobile businesses because you don’t have a shop front for people to recognize or visit you: make sure the franchise will support you to create a strong presence.
‘Brick & Mortar’ business
A ‘brick and mortar’ business, or shop-front, involves any normal venue such as a restaurant, retail premises or office. These have the advantage of catching walking traffic and relies less on marketing efforts than the other two categories, howe, er outlay and ongoing overheads tend to be high in these franchises and the quality of your location is going to be crucial to your business success. Fitness centres, fast food outlets, fashion outlets, department or convenience stores, tax agents: there’s a franchise for everyone in this category.
Room for expansion
Just because you are moving into a franchise, doesn’t mean your entrepreneurial spirit needs to be stifled. There are ways to expand your business and goals within the franchise model. When you become a franchisee there are a number of different methods you can use to purchase, and grow, your franchise business. You can purchase a franchise at one location or many locations at once or over time. You can purchase an existing franchise with the hard work already done for you. Other arrangements include becoming an area developer where you are responsible for opening multiple franchises within a particular geographic area, or Master Franchise where you play the middleman between the parent company and franchises by managing a region.
For more information on developing your business skills to help you start a franchise business, fill out the contact form or download our ebook on our website.