While it is true that business franchising is considered as one of the most effective and reliable form of businesses towards financial prosperity in life, one can not set aside the fact that deciding as to what kind of business franchise to venture into is very vital. Any franchisee for that matter has the primary goal of ensuring business growth to the optimum level with maximized profitability.
Whether the franchisee is a veteran or a neophyte in the field of entrepreneurship, still, choosing the right or appropriate franchise requires careful consideration of its features.
Is the concept fresh and unique? Does it bear creativity deemed potential for expansion? As per observation made, clients always crave for something new, one that eventually suits their respective needs, wants or standards. For instance, of the two franchises selling the same product, one that has a fresher and creative presentation always looks appealing and inviting.
Consider the company’s ability to make profits. It is important to gather significant data on the company’s progressing status for a certain time frame or if possible for the past years of its operation. Sometimes, in order to come up with a fresher concept, the cost incurred is relatively high, thereby placing the business into a fifty-fifty situation in terms of profitability. Likewise, achieving profitability also requires a good marketing strategy, one that is capable of expanding and strengthening its customer base.
A functional and orderly operating system. Any endeavor that does not apply or follow any set of procedures usually crumbles resulting to a backlog of works and varied problems. In short, success of the business also lies on the efficiency of its operating system where everything runs smoothly and orderly, beats the deadline, and readily and quickly responds to the demands of its clientele.
Provision of training and education. A good training and education package is one that is easily understood and implemented. The moment it starts to sail on, everyone involved in the operation should have fully acquired and familiarized the needed know-how to ably deliver quality goods and services.
Another important feature is an efficient profit margin incorporated in the concept. This is similar to an electric power company that has a standby generator to be used anytime, in case of a power failure in the main source or plant. This aspect guarantees the franchisee’s lucrative return of investment.
The last but not the least is the cost of the franchise. It must be affordable so that more aspiring entrepreneurs can avail of it. For any novice in this field, buying an expensive franchise is risk-taking.
An old adage says, “The journey to a thousand miles starts with a single step”. In like manner, the key to a successful business franchise starts with a well guided, carefully studied and wisely planned decision.
7-11 Stores Made the List of Top 25 Franchises in 2009
Understanding Legal Issues Surrounding Franchising
When Franchise Ownership Loses Its Luster