Every year, the franchise model fascinates countless entrepreneurs. However, the multitude of networks that exist does not make the choice easy. Which choose a franchise to get started ? The tips and criteria to follow to make a good decision are here.
What does the term franchise mean?
A franchise can be seen as an agreement (contract) between an entrepreneur and a company for commercial collaboration. Generally, the franchisee (entrepreneur) receives the authorization from the franchisor (company) which allows him to exploit its label or its marketing concept. The franchisee benefiting from this label to develop its activities, must in return, pay royalties to the franchisor. These royalties are either fixed or proportional to the turnover generated.
Choosing a franchise to start up: what should you look for?
Answer the question "What choose a franchise to get started In order to make the right choice, a number of factors must be considered.
Consider the sector of activity in which you want to invest
The first question to resolve is what you want to do. Having a passion for business creation is certainly necessary to start a franchise, but it is important that you like the business that the franchise you are aiming for covers. Indeed, operating in a sector that you love is the first key to success, since you are always motivated. As soon as this is clear to you, which franchise to choose to start, becomes easier to find.
Consider the skills needed
Choosing a franchise to get started requires that we have :
- Business management skills;
- marketing skills;
- communication and personnel management skills
- a good knowledge of the field of activity for which one has opted.
No matter what field of franchising you choose, it is essential to have a solid base in the business, or at least in what constitutes the essentials of the profession. It is precisely because one cannot be brilliant at everything or master everything that franchisors offer training. Then, it is the practice that brings the rest of the necessary knowledge.
Choosing a franchise to get started also requires taking stock of one's strengths and limitations. The skills assessment will allow you to identify your strengths and the areas where you need to improve. It is also the means to reveal, if necessary, the recruitments that one should aim for in order to overcome all the weak points and guarantee a successful entrepreneurial experience.
The popularity rating of the franchise to be chosen is a crucial element
Choosing a franchise to get startedTo become a franchisee is to be linked to a brand image, and this favors the beginning of a business without having to prove any expertise before seeing your first subscribers. This is why it is important to find out about the franchise you want.
Here is what you should look for first:
- It is absolutely necessary to verify that the franchisor is really the owner of its brand and that the latter is protected (INPI).
- Is the communication and marketing budget large enough to properly promote the brand?
- Today more than ever, no company can prosper without investing consistently on the web and social networks. It is therefore crucial to verify that the brand is very inclined to marketing automation. It is necessary to know the referencing policy that the franchisor deploys to ensure a better visibility to its brand.
In order to choosing a franchise to start upIn addition, you can approach the targeted franchisor to discuss the impact of marketing campaigns on the returns obtained; this will also allow you to determine the brand's popularity rating.
The choice of a franchise must take into account the strength of the market
Entering into a franchise is a decision that requires care and attention to detail. It would be downright suicidal to invest in a franchise without knowing whether the market is promising or shrinking. You can rely on statistics or talk to current franchisees to get a rough idea of the health of the industry.
A market study is necessary. If you don't know how to do this, you should seek the services of an expert. Such a study will not only facilitate the choice of the franchise, but also the steps related to the financing requests.
Thus, choosing a franchise to start up (whether it is a painting franchise, a building franchise or other), must take into account a strong demand and the sustainability of the market. The question of competition must also be examined. Indeed, a franchise may appear to be well positioned without being so. It is then necessary to verify if it is able to compete. Similarly, young franchises are ambitious and successful.
The cost of the initial investment and the expenses related to the franchise are also to be studied with attention while knowing that the personal contribution of the franchisee can approach 40 %.
What choose a franchise to get started ? The answer remains individual depending on all the aspects to be considered.