It’s never a bad time to launch your own business. Let’s face it, a start-up venture in a booming economy will always be the better choice, but the smart selection of a franchise opportunity can mean success in good or tough times.
The franchise business model comes with a level of transparency that increases your chance of success when compared with other small business opportunities or multi level marketing schemes, which are often fraught with potential misrepresentations and fraud.
Whether you’re targeting strong international or local franchise brands, your initial research should be as broad as possible, leaving the narrowing down to the industry and location for your business for later and here`s a few tips why.
Simply choosing a well-known brand franchise may not automatically lead to success if it is not the right franchise for you. Effective franchisors promote their franchises to qualified investors in a number of ways - trade shows, franchise shows, trade missions, the internet, targeted public relations, print advertising and through the use of franchise consultants or brokers. The draw back to the do-it-yourself approach to narrowing down your best fit is the amount of time you'll need. The right franchise needs the right location. Location is still key when establishing a small business. Don’t skimp on the prime location because even the most viable franchise may still fail if it is off the path of the buying public. .
A good concept in a saturated market is no longer a good concept. Even if you are in a country where the franchise business model is still a novelty and the number of franchises as a percentage of other small business is in a strong growth stage, the level of competition must still be researched. Look into the proximity and strength of competing business in the territory outside of the franchise. If the market is already saturated with like business, then consider locating to another area or to a franchise in another industry entirely.
Make sure your customers know you exist. Don`t assume that the brand recognition coming with the franchise is enough. Even though your franchisor may offer you the chance to buy into a marketing campaign there is always a need to allocate funds to promote locally.
The most effective approach for you to find the best fit franchise involves the use of brokers specializing in franchise matchmaking in your region. Brokers’ fees and commissions are paid by the franchisor, who relies upon the consultant to bring forward the qualified or serious franchisee buyer with financing ability.
I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability. Its mission included improving the quality of new Franchisees coming into a system. Advice is offered freely to franchise buyers by MatchPoint consultants and is vital to youin making a better, prudent, buying decision. The advice offered by our consultants does not make us lawyers; it is there to help you, with a high quality due diligence process. It is an effective hedge against misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers.
MatchPoint consultants trained by Nigel Mayne know the red flags in the investment field. It takes the very few promoters that practice business fraud to taint the dream of an individual and their family. That`s where seeking the independent advice of an expert franchising consultant is wise and invaluable from the start of your due diligence process.
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