Essential Tips For New Franchise Owners

Two focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Many business owners have entered the franchising arena. This arena comes with different rules and norms than other business types. The following contributed post is entitled, Essential Tips For New Franchise Owners.

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Lots of people want to start their own business. Franchising, which is when a brand provides licenses and agreements to entrepreneurs to run a business using their name, products, and services, is a business model that is getting more popular.

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You have a better chance of succeeding as an entrepreneur if you have the brand recognition of a known company behind you.

If you buy into a franchise, you will have access to a known product or service that customers are already familiar with. This makes going to you less of a risk, as they know what the brand provides. Starting with a franchise does have some risks, however.

Know Your Market

You don’t need to have years of experience in business to take advantage of the best franchise opportunities, but you should have some knowledge of the market you’re going into. This might be time spent working at a lower level in the same industry. If you don’t have this knowledge, talk to other franchise owners to start learning the industry. Being aware of the market you’re entering is essential if your business is going to be a success.

Choose The Right Location

The right location is important to any franchise. Think about what part of town would work best for the location of your business. If you own a franchise restaurant, for example, an area popular with tourists is a good idea to help you get a high footfall. The business district can work well for the same reason. Perhaps you have your eye on a space at a local shopping mall. The franchisor might be able to help you choose the best location for your business to help it thrive.

Get A Good Team

The team you have around you is very important. If you decide to start a franchise that will need more than just one person, you will need to go about the hiring process carefully. As a franchisee, your franchisor might have help available to you to train your new team, which should be covered in your franchise fee. A big benefit of having a team of strong employees in your franchise is that different people will bring in different skills to your business. You can utilise these skills to reach your business goals.

Choose Where You Get Your Finance From

It can be tough to secure finance for a franchise. Every franchise opportunity will come with a franchise fee. The amount that this fee will cost you can vary a lot. Sometimes your franchisor will ask you to pay the whole amount upfront at the start of the process, whereas others will let you pay some of the cost upfront, and spread the rest of the cost across a longer time period. Some banks do offer finance for franchising but make sure you read the terms of the finance very carefully. You can use your own money, make a deal with the franchisor, get funding from the bank. Whichever you choose, make sure understand the payment terms.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct Examiner.com, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.