Because there are always reasons to hang back – the media seem determined to talk us into a downturn, external forces can’t be controlled, politics, cost of living, interest rates, there is no end to the reasons why you might delay starting a business. And that’s exactly it, there is no end to the outside pressures which affect every business owner. And there never will be.
So, if you are watching and waiting for the perfect time to start your own franchise business, you will probably still be thinking about it in another year.
That’s not to dismiss any concerns you might have, being in business for yourself these days is not for the faint hearted. It makes sense to consider what drawbacks there are and try to mitigate any problems at the outset. But you need to make a start if it is ever going to happen – so will 2025 finally be your year?
Here are my suggestions to help you make an informed decision about going into business for yourself via a franchise.
First and foremost, you need to do some self-reflection and be honest with yourself about your skills and ambitions. What do you really want to do? You can build on your existing experience in your current and previous roles, or you can make a complete change and do something different. The beauty of franchising is that you will be operating under an existing proven structure, with initial training and ongoing support so you really can look at a complete change if that’s what you want.
But whatever it is (and franchising has a huge range of opportunities to choose from) make sure it is something that you feel passionate and enthusiastic about. Being in business instead of employment can be tough so it should be something that you will enjoy.
Secondly, you need to have some funds to put into any new venture, so understanding what franchises you can afford to buy will be crucial. Most of the high street banks have franchise teams who understand the sector and are able to introduce local managers to provide borrowing facilities if needed. Typically, banks will fund 70% of the total investment needed, including working capital so you can build that into your business plan and initial forecasts when you are working out how to fund your new venture.
There is a wide range of business sectors and types of business represented in the franchise sector, ranging from low-cost opportunities right up to multimillion-pound resales, so you should be able to find something within your budget.
Thirdly, research thoroughly, into both the franchisor you are looking at and also the sector and territory. Some of the aspects you need to consider include the longevity and stability of the franchisor. How will they support you in this new venture, do they have experience and a strong support team to help you? What does the legal contract include, do you understand it? Looking at the business itself, you need to focus on where your customers will come from, how will you be able to build up your sales, whatever the sector? What is the demand like for the services you will be offering? How long will it take you to break even, how will you cover your living expenses while you build the business?
There is a lot more to consider, but that gives you an outline of some of the things you should be thinking about.
Finally, and very importantly, if running your own business is a long-held dream, what is going to change in 2025?
There will never be a perfect time to start a business, make a change and take control. There will always be external factors which can impact on anyone in business for themselves. Yet, all around there are successful franchises operating in a wide range of sectors, could you be one of them?
Only YOU can do something to make it happen, otherwise you’ll still be wishing you had taken some action this time next year!
