The worst fear that many people have when considering starting their own business is that it fails.
External risk factors are critical to your chances of success. This is why the UK franchise industry has seen a phenomenal 10% growth over the past four years alone, as people seek-out tried and tested models to replicate rather than struggling to think of and implement their own idea – that may well prove to be unsuccessful.
However, no one business opportunity or franchise is the same and each sector can fall victim to changes outside of your control. New industry legislation, an increase in operational costs and lack of consumer confidence are just some of the things that can negatively impact the profitability and sustainability of any business.
Ensuring you understand, assess and minimise the risks of investing in a specific industry is a good start. But even more importantly, investing in a franchise model that is purposely designed to maximise income that can withstand the major external risks to that industry, could be critical to your success.
Nevertheless, no amount of due diligence and analysis or business planning can alleviate all risks, because ultimately, the biggest risk in any business is you and the decisions you make.
Goals don’t work. Decisions do
Of course, the single-biggest threat to your success in any business is not actually taking the first leap of faith. As entrepreneurial philanthropist Tony Robbins would say, “If you do what you’ve always done, you’ll get what you’ve always got.”
If you’ve determined that you can realistically achieve what you want from a chosen franchise or business opportunity, both financially and personally, feel comfortable that you’ve taken enough steps to ensure all external risks to the business have been mitigated, and have sufficient capital and knowledge to move forward, then don’t delay.
Joining a franchise and following a proven model doesn’t mean your business opportunity is completely risk-free nor renounce you of any responsibility. Whatever business you choose, you should understand that not making the right decisions, or any at all, will turn out to be the biggest risk. Luckily, these are the internal risks that you do have some control over.
For example, if you were to pursue property investment as a business without the support of a franchise, it would be down to you what strategy you follow, which property you buy and where, the builder you employ, the tenants you find and how effectively you manage the property. On the other hand, by investing in a property investment franchise you could be given all of the training, mentoring and tools you need to ensure you are successful. But, it’s still down to you to take on board and follow correctly.
Finally, make sure you know how to ‘plan for the unplanned’. Changes in personal circumstances, like divorce or illness will undoubtedly result in emotional hardship but can also pose a big threat to the success of your business. Invest in a franchise that will guide you to make plans for how your business will be managed, divided or passed on under such circumstances, minimising the risk of all your hard work going to waste. Platinum Property Partners, the world’s first property investment franchise and a full member of the British Franchise Association (bfa).