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Wednesday, July 17, 2019

What's Your Passion? How to Choose a Franchise Industry

by Editor (editor), , April 29, 2019

Here are some things you should consider before making your final decision.

Business is booming in South Australia and many young entrepreneurs are looking to invest in a franchise. Owning part of a business like that can be a great stepping stone to creating your own idea, but it can also be a smart long-term investment. As long as you know what you're getting yourself into, franchises can be pretty profitable. Deciding which franchise you want to run can be a pretty difficult decision. Here are some things you should consider before making your final decision.

Try your hand at something familiar

Sticking to what you know is often good advice. It’s a lot easier to find success in something you’re already familiar with. If you have a penchant for cooking, wouldn’t the next logical step be investing in a restaurant? Those who have a lot of experience in sales would probably be better off continuing down that path and expanding on their skills.

The franchise founder would obviously prefer that you have some experience in the same field as the franchise, but the decision is entirely up to you. If you want to branch out in a new direction, you have the freedom to do so.

Consider your personal goals

Before you make any big decisions, you have to look at the big picture. Where do you want to be in five years? If running a franchise is your next big step, then you need to figure out where that franchise can take you. Some businesses have limited avenues for improvement and that might not sit well with you.

Everyone goes into entrepreneurship with different goals in mind. Some people want to make more money in order to enjoy some of the finer things in life. Others will just want to pursue their passions to the fullest extent. It’s easy to get ahead of yourself if you forget about your ultimate goal with a franchise. In the end, it’s all about making some good business, but you have to make sure that the time you invested is going to be worth the trouble.

Make good use of your strengths

We all have different strengths and weaknesses. It’s a part of building your professional portfolio. Different skillsets will come in handy when running different franchises. You need to make sure you take advantage of your strengths when starting a business venture. Running a franchise is difficult enough on its own, but it can be downright nightmarish if you end up in a line of work you find difficult.

It would be a lot smarter to play on your own strengths. If you’re more of a people person, sales will come much easier to you than something like menial work. If you think of yourself as a strategist and good team leader, you might want to look into running a restaurant. Either way, you want something that will complement your own skills and wants.

Pick the role you want to have

There are two ways you can run your franchise. You have the option of being an absentee owner or an operator. Absentee owners take a pretty hands-off approach to running the franchise. They hire staff to do everything from the work to the management. A keen perception for talent seeking is needed in this role. If you pick the right kind of team to work for you, you'll end up with a business that can run itself and make you quite a bit of money.

Operators act as the day-to-day managers in the franchise. You still do most of the hiring, but you also take the role of manager for the business. It’s more of a direct kind of involvement in the business. You give yourself an important role and work alongside your team.

Choose wisely

Not every franchise is created equal. One of the main reasons people want to run a franchise is because of the convenience of starting a well-established business. You also get the opportunity to take advantage of brand loyalty and popularity. Still, this doesn’t mean you’ll get the same type of treatment from different franchise owners. Some might only give you breadcrumbs to work with. Communication is important between franchise owners and founders.

There are plenty of franchises for sale online in Adelaide, which means you don’t have to be in a rush to get in on the business. Pick your franchise wisely. Make sure that higher management wants to cooperate with you and see your business boom.

Do the math on your own budget

Franchise costs aren’t consistent across the board. You’ll have to pay an upfront fee to the franchise holder before opening your own branch. They can vary quite a bit depending on the kind of business you want to run and where you want to run it. Some will only cost you about ten thousand dollars to start, while others could require up to a million dollars to invest in. You need to make sure you have the necessary funds to start an investment like that. Many young Australian entrepreneurs opt for cheaper franchises because they seem easier.

Just because something is expensive doesn't mean it can't be a good investment. You have to take into account the amount of money the franchise will be raking in. Restaurant businesses are a humongous financial undertaking for anyone, but that doesn't mean that having a franchise in the middle of a busy town square won't be raking in tons of profit. You have to weigh money-making potential along with the initial operating costs.

Conclusion

Running a franchise can seem like a daunting task at first, but so is running any other kind of business. With a franchise, you are given a lot to work with right from the start, which allows you to expand on many of your skills. It can ease you into the world of management and help you become a better businessperson overall. Keep that in mind when deciding on which one to invest in.



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