Risk Versus Reward of Buying a Franchise | Benefits for Buying a Franchise

Risk versus reward of buying a franchise

Any entrepreneur wanting to take their first steps into business ownership should always look to see if the franchising route would be a viable option. If we look at some of largest economies, say Australia or USA, they have a large franchising network. This is simply because they are not concerned with failure, they know starting a new business venture can be a risk, but they are happy to take the plunge. This attitude is something that more professionals in the UK are adopting and the predications are that the UK franchising market is going to further grow in the foreseeable future.

To quickly decide what your best franchising options are you need to consider what your investment budget is, what sectors you are interested in and what potential business options would be best suited to your specialisms. When this is defined you can then explore the franchising businesses that are available.

A franchisor should be diligent in selecting the right individual, after all it is their overall brand that could be affected if things go wrong. During the selection process make sure they are fully transparent and you ask all the pertinent questions, also speak with other franchisees about what the support levels are like and how their individual business is performing. By doing this you can make an informed choice and make sure the franchise is the right business choice for you.

Fear will be present; it is relevant in every area of life but don’t allow it to be a part of your ultimate decision making. Base this on facts, figures and ultimately your gut feeling – if it feels right, if you have the right finances in place and if you have a passion for it then why would it not be the right decision for you?

Don’t fall into the trap of thinking other people have been successful so I will also. Being your own boss means from the outset you must push yourself incredibly hard. You will be given everything you need; you will have a proven business model, but you have to give it maximum effort. For the first 2 years you will probably never work harder but the long-term goals will come if you follow the advice and guidance you are given.

One final tip, try to avoid using personal finances to fund the purchase of a new franchise. There are some excellent funding solutions available, as you would when selecting your franchise, do the right amount of research and find the finance deal that will suit your individual need.

In summary there are great rewards to be had when becoming a business owner through franchising. If you need a little help or would like some business advice, please call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.

750 400 Lorna Slee