8 Steps to Buying the Right Franchise Business
For all the budding entrepreneurs who think startups to be an overwhelming task, buying a franchise seems to be a way out to achieve success. Since you are actually buying business plans from another company, franchising can be a safer option for starting a new business venture. Following are the factors to consider before finalizing a potential franchise particularly in the Recruitment Industry:
- Customer Demand
Check if there is ample amount of customer demand for the franchisor’s product or service. Also, check if the demand expected to continue in the future. Find out if there are any potential competitors or could the competitors emerge in the future. Make sure you ensure the product or service of exceptional quality so that the product stands out among the various competitors.
A foremost benefit of franchising is the training and support offered to franchisees. If you don’t have any business experience, then it is wise to choose a franchise that offers extensive training. Some franchise even provides constant support even after your franchise is launched. With appropriate supervision and training, the chances of your franchise booming right from the start will immensely increase.
- Business Track Record
Make sure you check the franchisor’s reputation and business record. Connect with government consumer protection agencies to check if there are any outstanding legal actions against the franchisor. Ensure that the franchisor’s infrastructure is established and comprehensive. Just because a company is offering its franchise does not mean it is worth taking up.
- Total cost of Franchise
Work out the total cost to run the business right from the start to running the business. Ask the franchisor’s to quote the exact amount to run its franchise. Ensure there are no hidden costs. The total costs must include:
* Franchise Fee
* Rent and security deposits
* Approximate utility costs
* Legal and accounting fees
* Travelling expenses
* Loan repayments (if any)
* Advertising and promotion
* Equipment cost
* Miscellaneous Expenses
Make sure you review the earnings claim with your franchisor. Your earnings as a franchise is mainly derived from:
* Sales- Sales is essentially the amount that a business receives in exchange for products sold or services provided over a given period of time.
* Cash flow- Cash flow is basically the difference between the amount that a business brings in and the amount of expenditure for running the business over a given period of time.
* Profit and Loss – Profit or loss is the amount of sales minus the expenses.
- Know the limitations
Almost every franchisee functions as per a set of rules and guidelines on how the branch will be functioning. These guidelines may include the location of the store, the interiors of the store, how the product needs to be sold or a service should be provided to the customers. In short, even though you are the owner of the store the franchisee owner dictates how to run the show. You will have to follow their guidelines and company standards. Failing to maintain their standards affects the brand.
- Is the Franchise Successful
Most of the franchisors begin with one branch or outlet. They generally have years of experience in selling goods or services. They might succeed in running their own outlet but it does not essentially mean that they can manage a franchise system too. Ensure that you check if the franchisor has enough experience and expertise to assist the new franchise.
- Future Scope for Expansion
Check the franchisor’s plans for growth and expansion. The growth in the franchise system increases the brand value. This, in turn, will help to attract more and more customers. Investigate the franchisor’s financial assets and resources. Check if they are capable of providing support to you and the other outlets.
Completing your research brings you to the most vital point – making a decision. Assess franchise opportunities carefully. Do not take a hasty decision. As with any new business venture, you need to carefully consider whether you have got the right skills and attitude to run a successful franchise. Analyze yourself and take a decision that suits you the most.
About Talent Corner
Talent Corner Believes in the Tremendous Need & Potential the Recruitment Industry Holds. We are equally excited about the Power of Entrepreneurship.
We were quick to Learn that Success in Our Business is Not in the Ability to Complete Transactions but in the Ability to Manage Relationships. Apart from High Quality Service, Our Industry Demands “Ownership” in Business. Thus in Order to Scale, we have Developed a Unique Franchise Opportunity to harness your Entrepreneur Aspirations.
Our Franchise Opportunity Supports You with
- Opportunity to Service Existing & New Client Acquired by the Head Office.
- Access to the Best Training & Intellectual Property Built by the Company over Several Years.
- Freedom from Mundane Administrative Activities.
- Access to Better Technological Resources
- Opportunity to be a Part of an Existing Branded Network.
Our Partners Must
- Have a Long Term Vision.
- Ability to Invest Time & Money.
- Desire to be an Opinion Leader in the Industry.
Our Plug & Play Model is the Most Conducive if you Desire to Start Your Own Recruitment Business. We already have Several Partners running their businesses very successfully.
To Learn More, Download Our Presentation
To know more, please connect with Ms. Snehal Kadu at [email protected] or +91 9769771504