The time is right to plunge into the world of business with favourable government policies supporting endless business opportunities.
Start-ups are exceeding all expectations but building a brand is a bold route with risks involved. Franchising on the other hand, is a fresh take for first-time business owners to hit a home run with an effective business model.
Franchising is undoubtedly a lucrative model with guarded risk that is hitting a great momentum in the Indian market. However, while choosing from the bouquet of thousand options available, it is important to pick that one right option that fits your aspirations perfectly. And for making the right decision, you must ask the right questions.
So, if you are pondering on the idea of buying a franchise then here is all you need to ask before taking the big leap.
Will I be able to take on the responsibilities for managing my own business?
All the glamour of “being your own boss” comes with its own set of risks and hardships. The franchise system offers training and ongoing support, but it is on the franchisee to manage the business.
Will I enjoy the work?
While choosing a franchise it is very important to understand your interest and expertise. Without the basic knowledge and interest in the industry, it becomes very difficult to sustain the competition.
Will I fit into the box?
In a franchise model, the consistency of the product or service is the key. So, everyone must adhere to one particular model of operation and there is not much scope for individualistic creativity.
Will I be able to fund the franchise?
Financial stability is the most crucial question one must ponder upon. Having adequate capital not just to buy the franchise but to operate it successfully until it turns profitable is the biggest challenge.
Have I checked all the legal documents?
Before signing any documents and sealing your opinions it is very important to read all the documents. Franchisors are required to mention all their terms and conditions in the agreement documents and reading them thoroughly and understanding each point helps you in making better decision.
Does the franchise have a successful track record?
The success of a franchise depends on multiple aspects apart from the product or service. The model at the core and the support from the franchisor offered to the franchisee also impacts the success rate of the business.
Think about how long did it take to see a return on investment?
Getting the sense of when to expect a return on investment helps in planning and securing your financials.
Does the franchisor provide training and support?
This is a very important aspect often neglected. Getting updated knowledge and hands-on-expertise on the business helps you thrive like no other.
How is the competition in the market?
Though franchisors ensure a single franchise within a locality, it is important to know and identify other potential brands that might be a tough competition.
Are there any unexpected costs?
Hidden costs are the worst thing that can happen to a budding business. Putting all the dimes to start a new business hardly leaves you with spare funds to incur the hidden costs.
These are few of the must-ask questions before starting your own franchise business. Do let us know if you have any other questions in the comment sections.