Franchising is fast becoming a popular way to start a business. Just walk down the main street of any city or even an HDB town center and chances are that you will pass a franchised fast-food restaurant, laundry, convenience store, or hotel.
Being a franchisee can bring quick success – but ask yourself 6 simple questions first.
1. Am I able to enjoy this franchise?
Franchisees should determine their passion and the type of businesses they enjoy best. This is because most franchisors require a commitment between 5 – 10 years. Moreover, building a franchise rooted in something you are already passionate about, will make it easier for you to overcome the tough challenges and adjustments in starting a business.
2. Am I willing to work hard?
While franchisors will provide ongoing training and support, the franchisee must manage their business daily, which means long hours and hard work. Typical work weeks are realistically between 60-70 hours, instead of a cozy 44 hours.
Franchisees must also be able to handle a wide spectrum of duties from managing staff turnover, suppliers, costing, inventory control to handling unsatisfied customers.
3. Am I good at human relations skills?
Strong relationships must be built with franchise owners and representatives, upon whom the franchisees will rely for support for the entire duration of the franchise contract.
If a franchise owner fails to meet quality and service standards expected by the franchisor, the entire franchise system and reputation of the chain may be affected and the chances of losing the franchise investment would be very likely.
4. Am I able to afford the franchise?
One major cause of business failure is under-capitalization and poor management of cash flow.
While a franchisor will be able to provide a good guide on business start-up, the franchisee must have enough capital to not only open the business but also operate it until it turns profitable.
For some, that may take 6 months or more, while some poorly managed franchises actually fail within their first year.
5. Am I supported by my family?
Managing a franchise is a full-time job requiring sacrifices of personal and family time.
Family members must understand that the franchise will make demands on the franchisee and should be supportive of the idea before a person commits to buying a franchise.
6. Am I willing to listen?
When a franchisee puts up the trademark and logo of the franchise, he or she is telling the customers that they can expect the same experience, product, menu, and quality as in any location of that franchise.
In fact, this is the key to franchising success. Anyone who does not like to conform to a predetermined formula or system should be cautious about buying a franchise.
Starting a franchise can be easy yet difficult. But with the passion and heart for the business that you are interested in, you are already on a good start.
Find out more on how you can start a Healthcare Foodservice with us today!