How do I choose the right franchise for me?
Answered by Rod Young from DC Strategy
How do I choose the right franchise for me?
The key is to set your criteria before you start looking at specific franchise opportunities. You and your spouse/family should decide on key issues such as:
1. How much capital am I prepared to commit to a franchise venture?
2. What geographical area is the business to be located in? (no more than 30 minutes from home is a good benchmark)
3. What hours and on what days am I prepared to work?
4. How many people do I want to employ?
5. How much income in wages and profit do I want to draw from the business in year 1, year 2 and year 3?
Note that none of the criteria are about the type of business as this is more an emotional discriminator.
Once you have this template of the ideal criteria you can then compare it to all the opportunities that attract your attention and see if they fit your specific needs. Avoid changing your criteria to fit the opportunity so emotional decisions don’t lead you down the wrong path.
The key is to set your criteria before you start looking at specific franchise opportunities. You and your spouse/family should decide on key issues such as:
1. How much capital am I prepared to commit to a franchise venture?
2. What geographical area is the business to be located in? (no more than 30 minutes from home is a good benchmark)
3. What hours and on what days am I prepared to work?
4. How many people do I want to employ?
5. How much income in wages and profit do I want to draw from the business in year 1, year 2 and year 3?
Note that none of the criteria are about the type of business as this is more an emotional discriminator.
Once you have this template of the ideal criteria you can then compare it to all the opportunities that attract your attention and see if they fit your specific needs. Avoid changing your criteria to fit the opportunity so emotional decisions don’t lead you down the wrong path.
About Rod Young
Rod Young is an Executive Director at DC Strategy. DC Strategy is widely recognised as the region’s leading Strategy, Franchising and International consulting group. DCS has developed the networks and brands of many of the region’s most successful businesses.
You should always check independently that an ask an expert answer published on Franchise Business applies to your particular circumstances
More Business Advice from Rod Young
How do I tell if a franchise system is really successful (or not so successful)?
Asking questions from a cross section of successful franchisees ...
Should I buy a new (Greenfield) franchise and start from scratch, or buy an existing franchise that is already established?
When deciding on the model of franchise that suits best comparative ...
How should I handle a dispute with my franchisor?
Dispute resolution within a franchise system can be conducted ...
How do I finance the purchase of a franchise?
Franchising enjoys a unique space within the small business ...
More Business Advice from DC Strategy
Why does the Flight Centre incentive model work so well?
Incentive based models have been successful but consideration ...
Do you want to become a franchisor?
Key decisions made during the initial strategy phases will provide ...
When is the right time to consider franchising?
Keys questions must be asked before undertakling any franchise ...
What did existing franchisors think about when franchising?
There are a few vital issues to consider before entering into ...
Contact DC Strategy
International Head Office
Level 5, 530 Collins Street
Melbourne
VIC 3000
Tel: 1300 905 347
Fax: 03 8615 7298
