We’ve come out of a year of uncertainty, and many Aussies are looking to secure a better future for themselves and their families.
So is now the right time to buy a franchise?
Ben Hatten, MD of franchise recruitment at consultancy firm BDC Partners, believes the basics remain the same whenever you buy.
He point out it is the work you put in, the industry you pick, and backing of the family that are crucial elements to success.
The right time to buy?
Here he looks at what you need to consider about your franchise purchase.
“The first question needs to be what are you passionate about? What do you love doing? There are a multitude of franchise businesses in the sector so when you have an answer to that question do some research and find your options.
“Secondly are you genuinely going to work your business hard? While franchisors will be there to support you in your business and show you what needs to done on an hourly, daily and weekly basis you still need to do it. Will you do it?
“Lastly, are you prepared to follow the system that has been developed over the years? This is the key. No doubt there have been many mistakes and lessons learned over the journey of the franchise business and as in any business, improvements made to the system.”
It’s important your family and friends understand the time and financial commitment any business owner must put in to make a success of their investment. And there may be a financial impact in the first 12 to 24 months as you build revenue.
“This is very important as the support of people around you will have a direct impact on your ability to drive your business hard and manage the highs and lows,” Ben cautions.
What about the industry you have targeted?
“The first question should be, is it a sunrise or a sunset business? By that I mean is it new and growing or is it at the end of its run? Riding an upswing or a downswing will have a dramatic impact on your business so really do your research so you are going in fully informed.
“Secondly what has happened during the pandemic particularly in Australia has forced retailers and business in general to drive online sales like never before.”
If the industry you have chosen has an online application make sure it’s being used effectively and fairly, and is helping to drive an omnichannel strategy.
“Once you have answered all these questions the fun stuff starts,” says Ben. “You have your direction; the family is on board and behind you 110 per cent and you feel your suited to be a franchise owner and you’re excited.”