There is no such thing as a risk-free business venture. The skill of an entrepreneur lies in assessing and understanding the risks that exist; while managing them in such a way as to minimize the chances of failure. Building your business using a proven business model is a good way to do reduce the odds of failure. With a business franchise, you get the best of both worlds. You have your own business, make your own decisions while still being your own boss. Alongside that, you will get the benefit of using a well-known brand name, with support and advice available from both the franchisor and other franchisees. So are you interested in taking advantage of a small business franchise opportunity, then below are seven success tips for minimizing your risk.
Seven success tips for a small business franchise
1. Do your homework
Your first step is to do your research. Find out everything you can about the market and the company. Remember that when you start a business, you are going to be spending many hours working hard and making future plans, so it has to be something you will enjoy.
2. Do your sums
You must prepare budgets, both for your personal survival and your business start-up costs. If you will be leaving a paid job or closing down an established business to take advantage of one of the many franchise opportunities that exist, you have to be sure that you will still be able to meet your financial obligations.
This doesn’t have to be a complex process but it does have to be undertaken with care. First make a list of all your outgoings. Make sure you don’t overlook anything and don’t forget to make provision for emergencies. For instance, if your car breaks down or you lose your glasses; you need to be able to deal with that. If your budget is overly stringent, you could be in trouble.
Business start-up costs
Your first and biggest cost will be the purchase price of the business franchise. You will also need to take into account other costs; which may include raw materials, staff, equipment and premises. But with careful research, negotiation and preparation; you will be able to arrive at a workable budget.
3. Make a plan
You will need to prepare a business plan for your new venture. As a general rule, a business plan will contain the following sections:
The product or service
Management and organization
The steps you have taken so far will help you with this, although you will undoubtedly have more work to do when devising financial forecasts.
4. Ask the experts
Before you present your business plan to potential funders, you must be confident it contains all the necessary information to facilitate decision making. It may be that you have written many business plans already. For many people, however, this will be the first time they have ever attempted business planning.
Fortunately, there are sources of feedback on your plan that will not cost you additional funds. Local Enterprise Agencies often give free support and advice, you can also get free business advice from the Small Business Adviser at your bank and the organization through which you aim to set up your franchise. As well as getting feedback on your business plan, it would be prudent to seek advice from an independent source on the contract on offer. You may have to pay for this advice, in which case it will be an additional start-up cost.
5. Finance the venture
Business finance often comes from several sources. You may have savings but will most likely need to borrow at least some money from external sources. Be sure to investigate any grants or low cost loans that are available for your type of business.
6. Learn, train, prepare
As well as planning, you may also find that you have to undertake some training. For instance, if you intend to start a fast food business or even keep your own books. Your needs will depend on your current level of knowledge and the nature of your business, but be sure you are ready for opening day.
Open the doors to the world and celebrate a successful business launch. Congratulations and good luck!
Author’s bio: Nathan Giles is a freelance writer, journalist and editor. He often writes articles on business models, leadership and entrepreneurship including startup in business, franchising opportunities and other business tips.