The willingness to follow another's business plan; sufficient capital for investment; the discipline to get the work done when self-employed…if you have decided that you possess these traits and want to own a franchise, then congratulations! You're half way there.
The next big decision is choosing which type of franchise industry would suit you best. With at least 25 to consider, this can be a little overwhelming. Grab a pen and paper and answer these seven questions honestly, and they should save you from wasting time researching franchise industries not suited to your temperament and abilities.
The Questions
1. Are you an outgoing, 'people person'?
A. Yes – I have excellent social skills and enjoy interaction
B. I have the ability to work as part of a team
C. No – I would prefer to go solo
2. Are you able to dedicate long hours to the project?
A. I can work extra time if necessary
B. I can work full time, but I would like to have weekends and evenings free
C. I want the hours to be more flexible
3. Do you have much experience in the business world?
A. Yes – I am confident operating at senior management level
B. I have some commercial understanding
C. No – I would require full training in this area
4. How much can you invest in a franchise?
A. I have or can borrow the resources for a higher priced franchise if necessary
B. Enough to buy an average franchise and survive the initial start-up phase
C. Relatively little – I am looking for low-cost franchises only
5. Are you happy to work from home?
A. No – I want to keep the business completely separate from my home/personal life
B. Staying at home or being out and about are both options
C. Yes – making my home my office is preferable
6. Are you willing to wear a uniform or business outfit?
A. Yes – I am happy to wear fixed or formal clothing
B. Sometimes – I can dress up when required
C. No – I would prefer casual wear
7. Can you work on your feet?
A. Yes – I do not mind physical work
B. Sometimes – I usually prefer mental to physical tasks
C. No – I need less demanding work
The Answers
Mostly As
00000183-7fc1-d8af-afbf-7fc373f00000Food franchises – this is of course the leading franchise industry around the world, with six out of the top 10 international franchises being food chains (according to this year's Top 100 Global Franchises Report). Initial investment for the big names is often higher, but if you follow their expert business models, you are almost guaranteed a great profit.It is a recession-proof industry with a high market demand, as everyone likes to eat out now and then.
Retail franchises – there are a wide range of products for sale and you are sure to find one that appeals. Often the franchise brand is so well known that you will have customers before you even open the store. Some retail franchises are e-commerce only, thereby reducing overheads and increasing the profits that go into your pocket.
Mostly Bs
have less time nowadays to do such tasks themselves.
Financial franchises – contrary to common belief, you rarely need to have previous experience in this industry to join it as the franchisor delivers full training and support from day one. Normally the service can be offered to SMEs and larger companies alike so the market is enormous, and the hours tend to reflect those of your customers and therefore weekend and late night work is not necessary.
00000183-7fc1-d8af-afbf-7fc373f20000Mostly CsATM franchises – this is usually a simple, part-time job. It can be run from home, with flexible hours and no overhead expenses.
Low cost franchises – for some of us, initial investment cost is the most important factor when considering what franchise to choose. This section puts industry types aside, and focuses instead on what is available for less than $15,000.