A franchise business is one of the most rewarding entrepreneurial ventures you can undertake. But, before you jump right into the opportunity to open your own franchise, it is best to do some reflection to ascertain your goals and objectives. Here are some questions to ask yourself:
- What do I want out of this franchise business?
- What skills do I have to offer?
- What am I passionate about?
- How much money am I willing and able to invest?
Your answers to these questions will help make your business plans more concrete. The next step is to choose between a service or retail franchise. Both have their advantages and disadvantages, and your choice will depend on your specific needs. Below are some things that may help you in your decision:
Service franchises cater to basic services that people often avail of, such as professional advice or services that require technical knowledge. Examples of service franchises include a property maintenance franchise, an accounting or bookkeeping franchise, or a pet washing and grooming franchise. Wherever your interests and skills lie, there is most likely a service franchise opportunity for you to begin and no shortage of fields and skills you can choose from.
The main advantage of a retail franchise opportunity is that it requires less capital to establish. You are free to rent cheap office spaces, get a coworking space, or you could manage your business from home. If your operations are home-based, you will also be eliminating a lot of overhead expenses such as monthly rent and equipment. Most service franchise operations can be done by appointment only, which means you have a flexible schedule. This might interest you if you value your work-balance life.
Retail franchises, on the other hand, are product-oriented and are managed by recognized brands. The most advantageous aspect of a retail franchise is that it is stable and reliably lucrative. The process of developing a viable business plan as well as establishing a loyal customer base has already been expedited for you by someone else. Pricing is not as major a concern as it would be with a service franchise since it is already dictated by the franchisor.
Plans for marketing campaigns and distribution channels will also be drawn up by the franchisor as well. Any issues you have can be addressed by the franchisor’s technical support team and qualified staff. Your responsibility as the franchisee is to oversee the inventory levels and to secure a physical location for the business. Some franchisors also offer training programs to equip you properly with the tools and knowledge to manage your franchise business.
Choosing which kind of franchise you want to operate is crucial to the success of your business. Both service and retail franchises come with their own challenges and advantages, and your choice will ultimately depend on your needs and what you intend to get out of the experience. Remember to play to your strengths and keep your goals and ambitions in mind when making your decision.