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Get your life into gear with a franchise
Get your life into gear with a franchise
By Nick James on June 9, 2010
If you are looking for a new career direction, buying into an existing franchise system is an option you should most definitely consider. Franchising is a booming industry with great benefits for those seeking a career change.
One of the great things about franchising is that franchises businesses provide many people with the opportunity to enter new industries, roles and careers, without the need of extensive experience.
Franchising is a business relationship in which the franchise (the owner of the business providing the product or service) assigns to independent people (the franchisees) the right to market and distribute the franchisor's goods or services, and to use the business name for a fixed period of time. The International Franchise Association defines franchising as a "continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organising training, merchandising and management in return for a consideration from the franchisee."
This ongoing business relationship includes the product, service and trademark, as well as the entire business concept itself form marketing strategy and plan, operational standards, system and formats, to training quality control and ongoing assistance, guidance and supervision. In short, it provides small businesses (the franchisee) with the tools of a big business (provided by the franchisor).
Franchising in Australia is amongst the most dynamic and progressive business sectors in the economy. It is a recognised and reputable way of doing business in Australia. Franchise systems are present in most industry sectors, and the economic impact of franchising is substantial and growing.
Franchising has revolutionised retailing in Australia, and provided small business proprietors with the competitive resources to compete against the large corporations that dominate Australian Retailing.
The styles, types and numbers of franchise systems out there to choose from are nearly as numerous and the number of people wanting to enter the franchising industry. Figures on those employed in the franchising industry alone are very impressive, an indication of franchising success and vibrant growth as a business format.
These statements are encouraging but can seem intimidating for someone in the market looking for a franchise; with so much on offer and in such a vibrant and dynamic marketplace, how do you find your way through the maze of choosing the right franchise for you?
Remember first that forewarned is forearmed; the smartest prospective franchisee first narrow down their choice to a particular industry or type of franchise (for example service-based versus retail, food versus non-food) and then do as much research as possible to find out what exactly is on offer.
So the question is posed, what are the key reasons why to buy a franchise?
- To increase your profitability of start up success.
- Because the particular system has been tried and proven.
- For a smoother transition into your own business.
- For group buying and advertising power.
- Sets you up with a recognisable brand name.
- It's a way to 'buy yourself a job'.
- You hit the ground running.
- You can retain your individualism.
- Franchising is pro-family.
- The Government wants you to win!
Money
How much do you want to invest on a purchase? What return do you expect? Could you get a better return elsewhere? A return of 25-30% on invested capital, plus a fair and reasonable wage is a good figure.
Mindset
What type of work do you wish to pursue? Outdoors? Retail? Home-based business? What does your family want you to do? Do they want to be involved too? Do you feel comfortable running your own business, or do you and your family prefer the safety of being an employee? Conversely, are you willing to bring your entrepreneurial impulses in line with the rest of the franchise team?
Experience
What experience have you gained from your employment in the past?
Franchise central is a recruitment management consultancy specialising in the development and marketing of franchise operations and hundreds of franchise opportunities throughout Australia and overseas for over 17 years. As franchise advisors, Franchise Central offer many different services to both franchisors and franchisees.
Franchise Central recognises the fundamental importance of assisting prospective purchases in selecting the best franchise most suited to your background and personal requirements. In developing successful franchise businesses, Franchise Central and its clients inject a lot of effort and research recommending the right people for the right franchise.
Franchise Central have experienced franchise advisors who would be happy to assist you further on any of your investigations regarding franchise opportunities and guide you in making the right choices that should suit you and your family's business requirements.