You first must ask yourself certain questions.
What skills do I have?
What business experience do I have?
What knowledge do I have of the business type I wish to start up in?
What are my financial resources?
Participating in a Franchise can provide you with answers to the first three questions and prepare you for ultimately owning your own business with far less risk of failure. Like all ventures there are good and not so good franchise organisations. Good ones will provide you with the knowledge, skills and support that you could never have available to you in your first own business. The old apprentice concept was just the same. A person without experience exchanged cheap labour for the ability to gain knowledge in a particular field.
The systems used in a franchise have been honed over many years and represent the sum total of the knowledge gained from all the outlets involved. They can help you select and negotiate the costs associated with your site, help train your staff and monitor your performance.
You may find out that you ultimately prefer to stay with a franchise than go it alone. At least you have created a personal asset in the form of knowledge and skills.
I was lucky enough to be associated with a local entrepreneur who took an idea and built it into over 70 outlets throughout Australia. From this experience I noted how he insisted as much as possible that the franchisors stayed with his business formula. While he would freely admit that the business formula had to evolve according to the experience time and outlet numbers provided.
If on the other hand you can give a positive answer to the four questions at the beginning then you have at least a base to start your business venture from.
Your challenges then become
Create a financial plan for at least a three year period because that will normally be you minimum lease time. ( Check you assumptions with your accountant.)
Obtaining a suitable location and lease. (Check the details with your legal advisor)
Designing the layout of your outlet
Forming a relationship with your suppliers ( Very Important)
Obtaining and training staff
Plan your opening activities which are designed to attract your future customers.
By the above you are minimising the chance of failure and thereby your chance of success. The more time and efforts you put into planning and investigation the before you start the less likely you are to be adversely effected by events that you have not taken into consideration.
